Does the Bevaris Alliance agreement limit liability for consequential damages?
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 includes a limitation of liability clause. Specifically, it states that neither party, nor their representatives, will be liable to the other or any third party 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 holds true even if such damages were foreseeable or if the breaching party was advised of the possibility of such damages. This means that a Bevaris Alliance franchisee would be restricted from seeking these types of damages from the franchisor, and vice versa, under the agreement.
Such limitations of liability are relatively common in franchise agreements. Prospective Bevaris Alliance franchisees should carefully consider the implications of this clause, as it could limit their ability to recover losses in certain situations. It is advisable to seek legal counsel to fully understand the scope and impact of this provision.