Are Speedline or its suppliers liable for punitive damages to Beggars Pizza 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;
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Speedline and its suppliers are not liable for punitive damages. The agreement specifies that Speedline and its suppliers will not be responsible for any punitive damages arising from the use or inability to use the software or any updates, even if they have been advised of the possibility of such damages. This limitation of liability is a standard practice in many franchise agreements related to software and technology services.
This exclusion of liability extends to various types of damages, including special, indirect, consequential, or incidental damages, as well as damages to the customer's computer, software, systems, or data. It also covers damages for loss of business profits, business interruptions, loss of business information, or any other economic or pecuniary loss. The purpose of this provision is to limit the potential financial exposure of Speedline and its suppliers under the agreement.
For a prospective Beggars Pizza franchisee, this means that if issues arise with the Speedline software or services that lead to punitive damages, the franchisee will not be able to recover those damages from Speedline or its suppliers. The franchisee's recourse is limited to the amount of payments made to Speedline under the agreement. It is important for franchisees to understand this limitation and consider it when assessing the risks associated with using the Speedline software and services.