Under what circumstances does Benjamin Franklin Plumbing NOT waive its right to punitive or exemplary damages?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and the Owners, on the one hand, and Franchisor on the other, waive any right to or claim of punitive or exemplary damages against the other, except that we do not waive our right to: (i) statutory, punitive or exemplary damages for violation of the Lanham Act, trademark infringement or dilution, or unauthorized disclosure of confidential information or trade secrets; or (ii) indemnification from Franchisee under Section 20 for any such damages claimed or awarded against Protected Parties.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 FDD, Benjamin Franklin Plumbing does not waive its right to punitive or exemplary damages under specific circumstances. Generally, Benjamin Franklin Plumbing and the franchisee waive any right to claim punitive or exemplary damages against each other.
However, Benjamin Franklin Plumbing retains the right to seek statutory, punitive, or exemplary damages if the franchisee violates the Lanham Act, infringes or dilutes trademarks, or engages in unauthorized disclosure of confidential information or trade secrets. Additionally, Benjamin Franklin Plumbing does not waive its right to indemnification from the franchisee under Section 20 of the franchise agreement for any such damages claimed or awarded against protected parties.
This means that while franchisees are generally protected from punitive damage claims by Benjamin Franklin Plumbing, they are still at risk if they engage in intellectual property violations or fail to meet their indemnification obligations as outlined in the franchise agreement. Franchisees should ensure they fully understand their obligations regarding trademarks, confidential information, and indemnification to avoid potential exposure to punitive damages.