What is the maximum aggregate liability of Speedline and its suppliers to a Beggars Pizza franchisee under the agreement?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
IN ANY CASE THE AGGREGATE AMOUNT OF SPEEDLINE'S AND THE 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.
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 Beggars Pizza's 2025 Franchise Disclosure Document, the agreement with Speedline stipulates a limitation of liability. Specifically, the aggregate amount of Speedline's and its suppliers' entire liability, whether in contract, tort (including negligence), or otherwise, will not exceed the total payments made by the Beggars Pizza franchisee (referred to as the "customer" in this context) to Speedline under the agreement.
This means that a Beggars Pizza franchisee's potential recovery from Speedline and its suppliers for any claims related to the agreement is capped at the amount the franchisee has already paid to Speedline. This limitation applies regardless of the legal basis for the claim, encompassing breach of contract, negligence, or other causes of action. The purpose of this provision is to limit the potential liability of Speedline and its suppliers arising out of this agreement.
This exclusion of liability extends to any claims brought by third parties against the Beggars Pizza franchisee. The FDD emphasizes that this limitation is intended to protect Speedline and its suppliers from extensive financial exposure related to the agreement. Prospective Beggars Pizza franchisees should carefully consider this limitation of liability, as it could significantly impact their ability to recover damages in the event of issues with Speedline's software or services. Franchisees may want to seek legal counsel to fully understand the implications of this clause.