Does the Bevaris Alliance agreement allow for damages for business interruption?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 26. Limitation of liability. IN NO EVENT SHALL A PARTY OR ANY OF ITS REPRESENTATIVES BE LIABLE UNDER THIS AGREEMENT TO THE OTHER PARTY OR ANY THIRD PARTY (TO INCLUDE AFFILIATES) FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL OR PUNITIVE DAMAGES, INCLUDING ANY DAMAGES FOR BUSINESS INTERRUPTION, LOSS OF USE, DATA, REVENUE OR PROFIT, DOWN TIME OR OTHER ECONOMIC LOSSES WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE AND WHETHER OR NOT THE BREACHING PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchise agreement explicitly states that neither party is liable for business interruption damages. Specifically, under the "Limitation of liability" clause, Bevaris Alliance and its representatives are not liable to the franchisee or any third party for any 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 other causes. It also applies regardless of whether such damages were foreseeable or whether the breaching party was advised of the possibility of such damages. This means that a Bevaris Alliance franchisee cannot recover damages from the franchisor for any interruption to their business, even if the interruption is caused by the franchisor's actions or negligence.
This type of clause is relatively common in franchise agreements, as franchisors seek to limit their potential liability. However, prospective franchisees should carefully consider the implications of such a clause, as it could leave them without recourse in the event of a significant business interruption. Franchisees should consult with a legal professional to fully understand the risks and benefits of this clause before signing the franchise agreement.