According to the 2025 Beard Papas Franchise Disclosure Document, the franchise agreement's enforceability regarding waivers of exemplary and punitive damages is subject to state-specific laws. Specifically, for franchisees in North Dakota, the agreement states that provisions requiring a franchisee to consent to a waiver of exemplary and punitive damages are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law. This means that Beard Papas franchisees in North Dakota retain their rights to pursue such damages, notwithstanding any clause in the standard franchise agreement.

This protection is due to the North Dakota Franchise Investment Law, which takes precedence over conflicting terms in the franchise agreement. Similarly, the Washington State Franchise Agreement Amendment indicates that provisions that unreasonably restrict or limit rights or remedies under the Washington Franchise Investment Protection Act, such as the right to a jury trial, may not be enforceable. This highlights the importance of understanding state-specific franchise laws, as they can significantly alter the enforceability of certain clauses within the franchise agreement.

For prospective Beard Papas franchisees, this means that the standard franchise agreement may not fully represent their rights in certain states. It is crucial to consult with an attorney to understand the specific protections afforded by state laws, particularly concerning waivers of rights and limitations of liability. This ensures that franchisees are aware of their legal options and can make informed decisions before entering into the franchise agreement. The FDD excerpts do not provide details on damage waivers or limitations for states other than North Dakota and Washington, so prospective franchisees should seek clarification from Beard Papas regarding these provisions in their specific state.