Does Beef O Bradys waive the right to punitive damages, and if so, are there any exceptions?
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 Beef O Bradys's 2025 Franchise Disclosure Document, both the franchisee and franchisor waive their rights to claim punitive or exemplary damages against each other to the full extent permitted by law. This waiver does not apply to the franchisee's obligation to indemnify Beef O Bradys, nor does it apply to claims regarding unauthorized use of the Beef O Bradys marks or confidential information.
In the event of a dispute, the party making a claim is limited to seeking equitable relief and recovering actual damages sustained. This means that a franchisee cannot seek additional damages intended to punish Beef O Bradys, except in cases involving indemnification, unauthorized use of trademarks, or misuse of confidential information.
This waiver of punitive damages is a fairly common practice in franchising agreements. It aims to limit the potential financial exposure of both parties in case of disputes, focusing instead on compensating for direct losses. Prospective franchisees should understand the implications of this waiver, as it could affect the potential recovery in the event of a legal claim against Beef O Bradys.