When is a waiver of exemplary or punitive damages void for a Big Blue Swim School franchise?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- WAIVER OF PUNITIVE AND EXEMPLARY DAMAGES AND JURY TRIAL. The following language is added to the end of Sections 22.I. and 22.J. of the Franchise Agreement:
HOWEVER, THIS WAIVER SHALL NOT APPLY TO THE EXTENT PROHIBITED BY SECTION 705/41 OF THE ILLINOIS FRANCHISE DISCLOSURE ACT OF 1987 OR ILLINOIS REGULATIONS AT SECTION 260.609.
- ILLINOIS FRANCHISE DISCLOSURE ACT. The following language is added as new Section 27 of the Franchise Agreement:
27. ILLINOIS FRANCHISE DISCLOSURE ACT
In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Source: Item 23 — RECEIPTS (FDD pages 76–278)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, a waiver of punitive and exemplary damages is void to the extent prohibited by Section 705/41 of the Illinois Franchise Disclosure Act of 1987 or Illinois regulations at Section 260.609. This means that while the franchise agreement may contain a clause where the franchisee waives their right to seek punitive or exemplary damages in a dispute, this waiver is not absolute.
Specifically, the Illinois Franchise Disclosure Act states that any condition, stipulation, or provision that attempts to bind a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void. This provision is designed to protect franchisees in Illinois from unknowingly or unwillingly giving up their legal rights under Illinois law.
For a prospective Big Blue Swim School franchisee, this means that if a dispute arises and Illinois law applies, the franchisee may still be able to pursue punitive or exemplary damages, even if they signed a franchise agreement containing a waiver. It is important for franchisees to understand their rights under state law, particularly in Illinois, where these protections are explicitly addressed in the franchise agreement. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and applicable state laws.