If liquidated damages are unenforceable, what damages is the Better Blend franchisee liable for?

According to Better Blend's 2024 Franchise Disclosure Document, if liquidated damages are prohibited by law or deemed unenforceable, the franchisee is liable for Better Blend's actual damages. This includes, but is not limited to, lost future profits.

This means that if a franchisee breaches the franchise agreement and the standard liquidated damages clause cannot be applied, Better Blend can pursue a claim for the actual financial harm they have suffered. This could involve calculating the profits Better Blend expected to receive from the franchisee's continued operation over the remaining term of the agreement.

For a prospective franchisee, this highlights the importance of adhering to the franchise agreement and understanding the potential financial consequences of a breach. Actual damages, especially lost future profits, can be a substantial amount, potentially exceeding what might have been payable under a liquidated damages clause. Franchisees should seek legal counsel to fully understand their obligations and the potential liabilities they face under the agreement.