Is Speedline liable for damages to Beggars Pizza's computer systems under this agreement?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
D, INCLUDING, BUT NOT LIMITED TO IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY, MERCHANTABLE QUALITY, DURABILITY, FITNESS FOR A PARTICULAR PURPOSE OR USE AND NON-INFRINGEMENT OR NON-VIOLATION OF THIRD PARTY RIGHTS. FURTHERMORE, SPEEDLINE DOES NOT WARRANT THAT THE OPERATIONS OF THE SOFTWARE WILL BE UNINTERRUPTED OR ERROR FREE. SPEEDLINE IS NOT RESPONSIBLE FOR THE OPERATION OR PERFORMANCE OF THE INTERNET OR ANY OTHER NETWORK.
LIMITED LIABILITY:
IN NO EVENT SHALL SPEEDLINE OR ITS SUPPLIERS BE LIABLE FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, OR INCIDENTAL DAMAGES OF ANY KIND; DAMAGES TO THE CUSTOMER'S COMPUTER, OTHER SOFTWARE, SYSTEMS, DATA, OR OTHER FACILITIES; DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS INTERRUPTIONS, LOSS OF BUSINESS INFORMATION, OR ANY OTHER ECONOMIC LOSS OR PECUNIARY LOSS; PUNITIVE DAMAGES; OR COSTS OF DATA STORAGE OR COMMUNICATIONS LINKS (INCLUDING ANY BACK-UP STORAGE OR LINKS) ARISING OUT OF OR IN CONNECTION WITH THE USE OF OR INABILITY TO USE THE SOFTWARE OR ANY UPDATES, EVEN IF SPEEDLINE OR THE SUPPLIERS HAVE BEEN ADVISED OF THE POSSIBILITIES OF SUCH DAMAGES OR LOSSES.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Speedline's liability for damages to a customer's computer systems is limited under the agreement. Specifically, Speedline is not liable for any special, indirect, consequential, or incidental damages of any kind, including damages to the customer's computer systems, software, data, or other facilities. This limitation applies even if Speedline has been advised of the possibility of such damages.
This means that if a Beggars Pizza franchisee experiences computer system damages as a result of using Speedline's services or software, Speedline will generally not be responsible for covering the costs of repair or replacement. The franchisee bears the risk of such damages, potentially impacting their business operations and profitability.
However, the aggregate amount of Speedline's liability is capped at the amount of payments made by the customer to Speedline under the agreement. This exclusion of liability extends to third-party claims against the customer, further limiting Speedline's potential financial responsibility. Prospective Beggars Pizza franchisees should carefully consider this limitation of liability and evaluate whether to obtain additional insurance coverage to protect against potential computer system damages.