Does the waiver of punitive damages in the Bft agreement include a waiver of lost profits?

According to Bft's 2025 Franchise Disclosure Document, the agreement includes a waiver of punitive damages that also encompasses lost profits. Specifically, the document states that the parties waive any right to claim punitive, exemplary, incidental, indirect, special, or consequential damages, including lost profits. This waiver applies to any cause of action, whether based in contract, negligence, strict liability, tort, or otherwise. In the event of a dispute, recovery is limited to actual damages.

This waiver means that a Bft franchisee is giving up the right to sue for lost profits and certain other types of damages. The franchisee's potential recovery in a dispute is limited to actual, direct damages. This could significantly limit the financial compensation a franchisee might receive in a successful lawsuit against Bft.

However, the FDD also includes state-specific riders that may modify this waiver. For example, certain parts of the waiver might not be enforceable under the North Dakota Franchise Investment Law, and the parties agree to enforce the provision only to the extent the law allows. Similarly, the Minnesota Rider states that nothing in the disclosure document can reduce any of the Area Developer's or Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or Area Developer's or Franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. Franchisees should carefully review these state-specific provisions and consult with legal counsel to understand the full implications of the damage waivers in their specific jurisdiction.