Does the waiver of punitive damages in the Bft agreement apply to claims based on strict liability?

According to Bft's 2025 Franchise Disclosure Document, the franchise agreement includes a waiver of punitive damages. Specifically, the parties waive any right to claim punitive, exemplary, incidental, indirect, special, or consequential damages against each other. This waiver applies to any cause of action, regardless of whether it is based in contract, negligence, strict liability, tort, or otherwise.

This means that a Bft franchisee is limited to recovering only actual damages in the event of a dispute with the franchisor. The franchisee cannot seek additional damages such as punitive or consequential damages, even if the dispute arises from the franchisor's negligence or strict liability. This limitation on potential recovery could significantly impact the financial outcome of any legal action a franchisee might pursue against Bft.

It is important for a prospective Bft franchisee to understand the implications of this waiver. By agreeing to the franchise agreement, the franchisee is giving up the right to seek certain types of damages that could otherwise be available. This could affect the franchisee's ability to be fully compensated for losses in the event of a dispute with Bft. Franchisees should consult with legal counsel to fully understand the scope and impact of this waiver before signing the agreement.