Does the Beef O Bradys Franchise Agreement include a waiver of punitive damages?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 19.5 of the Franchise Agreement ("Waiver of Punitive Damages") is deleted from all Franchise Agreements used in the State of Indiana.
Waiver of Exemplary & Punitive Damages. Provisions in franchise agreements or related agreements that permit the franchisor to repurchase the franchisee's business for any reason during the term of the franchise agreement without the franchisee's consent are unlawful pursuant to RCW 19.100.180(2)(j), unless the franchise is terminated for good cause.
Statute of Limitations and Waiver of Jury Trial. Provisions contained in the Franchise Agreement or related agreements that unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Washington Franchise Investment Protection Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys Franchise Disclosure Document, the franchise agreement initially includes a waiver of punitive damages. However, this waiver is not absolute and is subject to certain state laws. Specifically, Section 19.5 of the Franchise Agreement, which contains the "Waiver of Punitive Damages," is deleted from all Franchise Agreements used in the State of Indiana.
Furthermore, in the state of Washington, provisions in the franchise agreement or related agreements that permit the franchisor to repurchase the franchisee's business for any reason during the term of the franchise agreement without the franchisee's consent are unlawful pursuant to RCW 19.100.180(2)(j), unless the franchise is terminated for good cause. Additionally, provisions in franchise agreements or related agreements that unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Washington Franchise Investment Protection Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
This means that while Beef O Bradys generally includes a waiver of punitive damages in its franchise agreements, this waiver may not be enforceable or may be removed altogether depending on the state in which the franchise is located. Prospective franchisees should be aware of the specific laws in their state regarding waivers of punitive damages and other franchise-related provisions to understand their rights and obligations fully.