Does the Bevaris Alliance agreement limit liability for downtime or other economic losses?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchise agreement includes a limitation of liability clause. This clause states that neither Bevaris Alliance nor its representatives will be liable to the franchisee or any third party for consequential, incidental, indirect, exemplary, special, or punitive damages.

This limitation extends to damages related to business interruption, loss of use, data, revenue, or profit, downtime, or other economic losses. The 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 Bevaris Alliance was advised of the possibility of such damages.

This type of clause is common in franchise agreements to protect the franchisor from potentially large and unpredictable damage claims. However, it means that a Bevaris Alliance franchisee's ability to recover losses from the franchisor due to downtime or other economic factors is significantly limited, even if those losses are due to the franchisor's actions or negligence. Franchisees should carefully consider this limitation and its potential impact on their business before investing in a Bevaris Alliance franchise.