What damages are waived by both parties under the Beem Light Sauna agreement?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.5 MUTUAL WAIVER OF PUNITIVE DAMAGES**.
EXCEPT FOR YOUR OBLIGATION TO INDEMNIFY US FOR THIRD PARTY CLAIMS UNDER SECTION 11 (INDEMNIFICATION), CLAIMS FOR YOUR INFRINGEMENT OF OUR INTELLECTUAL PROPERTY, AND CLAIMS FOR YOUR BREACH OF YOUR OBLIGATIONS UNDER SECTION 10 (PROPRIETARY INFORMATION) OF THIS AGREEMENT, NEITHER PARTY WILL BE ENTITLED TO RECOVER SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES UNDER THIS AGREEMENT.**
- 16.6 MUTUAL WAIVER OF CLASS ACTIONS**.
YOU AND WE EACH WAIVE ANY RIGHT TO BRING ANY CLAIMS ON A CLASS-WIDE BASIS.
EACH PARTY MUST BRING ANY CLAIMS AGAINST THE OTHER PARTY ON AN INDIVIDUAL BASIS AND MAY NOT JOIN ANY CLAIM IT MAY HAVE WITH CLAIMS OF ANY OTHER PERSON OR ENTITY OR OTHERWISE PARTICIPATE IN A CLASS ACTION AGAINST THE OTHER PARTY.**
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, both the franchisee and franchisor agree to waive certain types of damages. Specifically, Beem Light Sauna and its franchisees mutually waive the right to recover special, consequential, exemplary, or punitive damages. This means that neither party can seek these types of damages from the other, regardless of the circumstances. However, there are exceptions to this waiver.
The waiver does not apply to the franchisee's obligation to indemnify Beem Light Sauna for third-party claims. It also does not apply to claims related to the franchisee's infringement of Beem Light Sauna's intellectual property or breaches of obligations regarding proprietary information. In these specific cases, Beem Light Sauna retains the right to pursue all available damages, including those that are special, consequential, exemplary, or punitive.
Additionally, both Beem Light Sauna and the franchisee waive the right to bring any claims on a class-wide basis. Each party must bring claims against the other on an individual basis and may not join any claim with claims of any other person or entity or otherwise participate in a class action against the other party. This means any disputes must be handled individually, preventing franchisees from collectively suing Beem Light Sauna.
These waivers are common in franchise agreements to limit potential liability and encourage resolution of disputes on an individual basis. Prospective Beem Light Sauna franchisees should carefully consider the implications of these waivers, as they could affect their ability to seek certain types of compensation in the event of a dispute with the franchisor.