Does the Bevaris Alliance agreement limit liability for loss of use, data, revenue, or profit?
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. This clause states that neither Bevaris Alliance nor the franchisee (or any third party) will be liable for certain types of damages.
Specifically, the clause covers consequential, incidental, indirect, exemplary, special, or punitive damages. This includes damages related to business interruption, loss of use, loss of data, loss of revenue, or loss of profit. It also extends to 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 legal theories.
This limitation applies even if such damages were foreseeable or if the breaching party was advised of the possibility of such damages. This type of clause is relatively common in franchise agreements as it aims to protect both the franchisor and franchisee from potentially large and unpredictable damage claims. Prospective franchisees should understand the implications of this clause and how it might affect their rights and remedies in case of a dispute.