Does the definition of 'Consequential Damages' for Buff City Soap include lost profits?

According to Buff City Soap's 2025 Franchise Disclosure Document, the definition of 'Consequential Damages' does include lost profits. The FDD specifies that consequential damages arise from a party's negligent performance or breach of the agreement.

Specifically, the definition encompasses damages and injury resulting from a party's negligent performance or breach of the agreement. This includes not only lost profits but also compensation for damages to reputation and goodwill. The definition further specifies that these damages can include costs resulting from delays, financing, marketing materials and media time and space, and costs of changing, substituting, or replacing these elements.

For a prospective Buff City Soap franchisee, this definition is important because it clarifies the types of financial losses for which either the franchisee or franchisor could be held liable in the event of a breach of contract or negligence. Understanding this definition can help a franchisee assess potential risks and liabilities associated with the franchise agreement.

It is important for prospective franchisees to consult with a legal professional to fully understand the implications of this definition and how it may affect their rights and obligations under the franchise agreement.