Does the Bevaris Alliance agreement allow for damages for loss of revenue?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchise agreement contains a limitation of liability clause. This clause specifies that neither party, nor their representatives, can be held liable for certain types of damages.

Specifically, Bevaris Alliance is not liable 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 other causes.

The limitation of liability applies even if such damages were foreseeable or if the breaching party was advised of the possibility of such damages. This means that a franchisee may not be able to recover damages for lost revenue or profits, even if Bevaris Alliance's actions directly caused the loss. Prospective franchisees should be aware of this limitation and consider its potential impact on their business.

This type of clause is relatively common in franchise agreements, as franchisors often seek to limit their potential financial exposure. However, the specific scope and enforceability of such clauses can vary depending on applicable state laws and the specific circumstances of each case. Franchisees should consult with legal counsel to fully understand the implications of this clause and its potential impact on their rights and remedies.