Are there any exceptions to the waiver of punitive damages in the Beef O Bradys agreement?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.5 **Waiver of Punitive Damages.
EXCEPT FOR YOUR OBLIGATIONS TO INDEMNIFY US AND CLAIMS FOR UNAUTHORIZED USE OF THE MARKS OR 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 FDD, both the franchisee and franchisor waive the right to claim punitive or exemplary damages against each other in the event of a dispute. However, there are specific exceptions to this waiver.
The waiver of punitive damages does not apply to the franchisee's obligation to indemnify Beef O Bradys. It also does not apply to claims made by Beef O Bradys regarding the unauthorized use of their marks or confidential information. This means that Beef O Bradys retains the right to seek punitive damages in these specific cases, while the franchisee is limited to equitable relief and recovery of actual damages in most other disputes.
For franchisees in Indiana, Section 19.5 of the Franchise Agreement, which covers the waiver of punitive damages, is entirely deleted from the franchise agreement. This means that the standard waiver of punitive damages does not apply to Beef O Bradys franchises operating in Indiana, and the legal rights regarding punitive damages would be governed by Indiana state law.