What specific obligations are excluded from the waiver of punitive damages in the Beef O Bradys agreement?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.5 Waiver of Punitive Damages. Except for your obligations to indemnify us and claims for unauthorized use of the marks or the confidential information, you and we each waive to the full extent permitted by law any right to, or claim for, any punitive or exemplary damages against the other. You and we also agree that, in the event of a dispute between you and us, the party making a claim will be limited to equitable relief and recovery of any actual damages it sustains.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys Franchise Disclosure Document, franchisees and Beef O Bradys both waive the right to claim punitive or exemplary damages against each other in the event of a dispute. However, this waiver does not apply to certain obligations.
Specifically, the waiver of punitive damages does not extend to the franchisee's obligation to indemnify Beef O Bradys. Additionally, claims related to the unauthorized use of Beef O Bradys' trademarks or confidential information are excluded from this waiver. This means that Beef O Bradys can seek punitive damages from a franchisee in cases involving misuse of their brand or proprietary information, and vice versa.
This provision is important for prospective franchisees to understand, as it clarifies the circumstances under which they might be liable for punitive damages despite the general waiver. It highlights the critical importance of protecting Beef O Bradys' brand and confidential information and fulfilling indemnification obligations as a franchisee.