Is the payment of liquidated damages considered an election of remedies by Buff City Soap?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
Any payments received will be in addition to and not in lieu of any other remedies available to Franchisor at law or in equity.
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, any payments received by Buff City Soap will be in addition to any other legal or equitable remedies available to them. This means that if a franchisee breaches the franchise agreement and Buff City Soap receives payments (potentially as liquidated damages), Buff City Soap is still entitled to pursue other legal or equitable remedies.
In simpler terms, accepting a payment from a franchisee does not limit Buff City Soap's ability to take further action against the franchisee for any breach of contract. This could include seeking an injunction, specific performance, or additional damages in court.
This clause is favorable to Buff City Soap, as it preserves their full range of options in case of a dispute or breach by the franchisee. A prospective franchisee should be aware that making a payment to resolve an issue does not guarantee that Buff City Soap will not pursue further legal action.