Does the Bevaris Alliance agreement allow for consequential damages?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchise agreement includes a clause that limits liability for both parties. Specifically, it states that neither party is liable to the other for consequential, incidental, indirect, exemplary, special, or punitive damages. This includes damages for business interruption, loss of use, data, revenue or profit, downtime, or other economic losses.

This limitation applies regardless of whether the damages arise from breach of contract, tort (including negligence), strict liability, or any other legal theory. It also applies regardless of whether such damages were foreseeable or whether the breaching party was advised of the possibility of such damages. This clause is intended to protect both Bevaris Alliance and its franchisees from potentially large and unpredictable damage claims.

For a prospective Bevaris Alliance franchisee, this means that if Bevaris Alliance breaches the franchise agreement, the franchisee's ability to recover damages is limited. Similarly, Bevaris Alliance cannot seek these types of damages from a franchisee. While this provides some protection for franchisees, it also limits their potential recovery in case of significant losses due to the franchisor's actions. This type of clause is relatively common in franchise agreements to manage and limit risk for both parties.