factual

Does the exclusion of liability in the Speedline agreement for Beggars Pizza extend to third-party claims against the franchisee?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

THIS EXCLUSION OF LIABILITY ALSO INCLUDES ANY LIABILITY WHICH MAY ARISE OUT OF THIRD PARTY CLAIMS AGAINST THE CUSTOMER. THE PURPOSE OF THIS PROVISION IS TO LIMIT THE POTENTIAL LIABILITY OF SPEEDLINE AND THE SUPPLIERS ARISING OUT OF THIS AGREEMENT.

Source: Item 23 — RECEIPT (FDD pages 39–192)

What This Means (2025 FDD)

According to the 2025 Beggars Pizza Franchise Disclosure Document, the Speedline agreement's exclusion of liability does extend to third-party claims against the franchisee. Specifically, the agreement states that the exclusion of liability includes any liability that may arise out of third-party claims against the customer, which in this case is the Beggars Pizza franchisee. The purpose of this provision is to limit the potential liability of Speedline and its suppliers.

This means that Beggars Pizza franchisees are unlikely to be able to hold Speedline liable for damages resulting from third-party claims related to the Speedline software or services. This could include claims related to data breaches, software malfunctions, or other issues arising from the use of the Speedline system. The aggregate amount of Speedline's and its suppliers' entire liability in contract, tort (including negligence) or otherwise under any and all provisions of this agreement shall not exceed the amount of all payments made by the customer to Speedline under this agreement.

For a prospective Beggars Pizza franchisee, this limitation of liability is an important consideration. It highlights the need to carefully evaluate the risks associated with using the Speedline system and to potentially seek additional insurance coverage or other risk mitigation strategies. Franchisees should also ensure they understand the terms of service and any potential liabilities associated with third-party applications integrated with the Speedline software. This clause is intended to protect Speedline from extensive legal claims, placing a greater burden on the franchisee to manage risks associated with the software's operation and any related third-party issues.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.