If Speedline is negligent, does the liability cap still apply to Beggars Pizza?

According to Beggars Pizza's 2025 Franchise Disclosure Document, the agreement with Speedline contains a limitation of liability clause. This clause specifies that even in cases of negligence, Speedline's financial liability is capped. Specifically, the aggregate amount of Speedline's and its suppliers' liability in contract, tort (including negligence), or otherwise will not exceed the total payments made by the customer (in this case, the Beggars Pizza franchisee) to Speedline under the agreement. This means that regardless of the damages suffered due to Speedline's negligence, the franchisee can only recover up to the amount they have already paid to Speedline.

This limitation of liability extends to claims arising from third parties against the Beggars Pizza franchisee. The purpose of this provision is to protect Speedline and its suppliers from potentially large liabilities stemming from the agreement. This is a significant risk factor for franchisees, as it limits their ability to recover damages beyond their payments to Speedline, even if Speedline's negligence causes substantial losses to the franchisee's business.

Such limitations of liability are relatively common in franchise agreements, particularly for technology or software services. However, the specific cap (total payments made) and the inclusion of negligence within the limitation are important points for a prospective Beggars Pizza franchisee to consider. It is crucial to understand the potential risks and financial implications of this clause before entering into an agreement that incorporates Speedline's services. Franchisees should seek legal counsel to fully assess the impact of this liability limitation on their business.