To what extent are punitive damages waived under the Bens Soft Pretzels franchise agreement?

According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the franchise agreement generally includes a waiver of exemplary and punitive damages. However, this waiver does not apply to franchisees in North Dakota. For North Dakota franchisees, this waiver is considered deleted from both the Disclosure Document and the Franchise Agreement, meaning they retain the right to seek punitive damages where applicable under North Dakota law.

This means that, except for franchisees in North Dakota, a franchisee generally waives their right to seek punitive damages from Bens Soft Pretzels, even if the franchisor's actions are particularly egregious. Punitive damages are intended to punish a defendant for malicious or reckless behavior, and this waiver limits the franchisee's ability to obtain such damages.

For prospective franchisees outside of North Dakota, this waiver represents a significant limitation on their potential legal recourse against Bens Soft Pretzels. It is important to understand the implications of this waiver and to consider seeking legal advice before signing the franchise agreement. Franchisees in North Dakota should be aware that this waiver does not apply to them, and they retain their rights under North Dakota law to seek punitive damages.