What specific claims are exempt from the mutual waiver of punitive damages for Beem Light Sauna?
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.**
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 franchisor and franchisee waive the right to recover special, consequential, exemplary, or punitive damages from each other. However, there are specific exceptions to this mutual waiver.
The franchisee is still obligated to indemnify Beem Light Sauna for third-party claims. This means if someone sues Beem Light Sauna because of something the franchisee did, the franchisee may have to cover Beem Light Sauna's legal costs and any damages awarded. Additionally, the waiver does not apply to claims regarding the franchisee's infringement of Beem Light Sauna's intellectual property, such as trademarks or copyrights.
Finally, the waiver of punitive damages does not extend to claims arising from the franchisee's breach of obligations related to proprietary information as outlined in Section 10 of the franchise agreement. This likely covers confidential information, trade secrets, and other sensitive data that Beem Light Sauna shares with its franchisees to operate their businesses. Therefore, Beem Light Sauna can seek punitive damages in these specific instances, despite the general waiver.