Do both Beggars Pizza and the franchisee waive the right to a jury trial?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 25.5 WAIVER OF RIGHT TO JURY TRIAL AND PUNITIVE DAMAGES.
FRANCHISOR AND FRANCHISEE HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY AGREE AS FOLLOWS: (A) FRANCHISOR AND FRANCHISEE HEREBY EXPRESSLY AND IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER OF THEM AGAINST THE OTHER, WHETHER OR NOT THERE ARE OTHER PARTIES IN SUCH ACTION OR PROCEEDING, AND (B) FRANCHISOR AND FRANCHISEE HEREBY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR CLAIM OF ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE OTHER AND AGREE THAT IF A DISPUTE BETWEEN THEM ARISES, EACH WILL BE LIMITED TO THE RECOVERY OF ANY ACTUAL DAMAGES SUSTAINED.
To the extent any of the provisions of this Section 25.5 are inconsistent with the provisions of Section 705/41 of the Illinois Franchise Disclosure Act of 1987, the provisions of Section 705/41 of the Act will apply.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, both the franchisor and franchisee knowingly and voluntarily waive their right to a jury trial. This waiver applies to any action, proceeding, or counterclaim brought by either party against the other, regardless of whether other parties are involved. This means that any disputes arising between Beggars Pizza and the franchisee will be resolved by a judge rather than a jury.
Additionally, both Beggars Pizza and the franchisee waive any right to claim punitive or exemplary damages against each other to the fullest extent permitted by law. In the event of a dispute, each party is limited to recovering only the actual damages they sustained. This provision aims to limit the potential financial exposure of both parties in case of legal disputes.
However, the FDD also states that if any part of this waiver is inconsistent with the Illinois Franchise Disclosure Act of 1987, the provisions of that Act will take precedence. Therefore, franchisees should be aware of their rights under Illinois law, as those rights may supersede the waiver in certain circumstances. Prospective franchisees should consult with a legal professional to fully understand the implications of these waivers and how they may affect their rights.