Do Ben Jerrys and the developer waive the right to punitive or exemplary damages against each other?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.7 WAIVER OF PUNITIVE AND EXEMPLARY DAMAGES: BEN & JERRY'S AND DEVELOPER 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 IN THE EVENT OF A DISPUTE BETWEEN THEM, EACH SHALL BE LIMITED TO THE RECOVERY OF ANY ACTUAL DAMAGES SUSTAINED BY IT.
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, both Ben & Jerry's and the developer agree to waive any right to claim punitive or exemplary damages against each other. This means that in the event of a dispute, neither party can seek damages intended to punish the other party beyond the actual losses incurred.
This waiver is intended to limit the financial exposure of both Ben Jerrys and its developers in case of legal disputes. Instead of potentially facing large punitive damage awards, both parties are limited to recovering only the actual financial losses they can prove. This can make resolving disputes more predictable and potentially less costly.
For a prospective Ben Jerrys developer, this waiver means that if they have a dispute with Ben Jerrys, they will not be able to seek punitive damages, even if they believe Ben Jerrys acted maliciously. They will only be able to recover their actual, provable losses. Similarly, Ben Jerrys is restricted from seeking punitive damages from the developer. This clause aims to create a more balanced legal playing field, focusing on compensation for actual harm rather than punishment.