Does a Beggars Pizza franchisee waive the right to a jury trial in disputes with the franchisor?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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 in any action, proceeding, or counterclaim against each other, whether at law or in equity. This waiver applies regardless of whether other parties are involved in the action.
This means that any disputes between a Beggars Pizza franchisee and the franchisor will be resolved by a judge rather than a jury. This can have significant implications for the franchisee, as they will not have the opportunity to present their case to a jury of their peers. Jury trials can be more advantageous for franchisees in certain cases, as juries may be more sympathetic to the franchisee's situation than a judge.
Additionally, the franchisee waives the right to claim punitive or exemplary damages against Beggars Pizza and agrees to limit recovery to actual damages sustained. However, if any of these provisions are inconsistent with the Illinois Franchise Disclosure Act of 1987, the provisions of that Act will apply. This is a critical point, as state franchise laws can sometimes override certain provisions in the franchise agreement to protect franchisees.
It is important for a prospective Beggars Pizza franchisee to understand the implications of waiving their right to a jury trial and the potential limitations on damages they can recover in a dispute with the franchisor. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and applicable state laws.