Does the Buona franchise agreement allow the Franchisor or Developer to claim consequential, punitive, or exemplary damages against the other party?

According to Buona's 2025 Franchise Disclosure Document, both the Franchisor and the Developer (or Franchisee) waive the right to claim consequential, punitive, or exemplary damages against each other. This means that in the event of a dispute, both parties are limited to recovering only the actual direct damages they sustained.

This waiver is a significant aspect of the franchise agreement, as it restricts the types of damages that can be sought in a legal dispute. Consequential damages, for example, could include lost profits or other indirect losses resulting from a breach of contract. Punitive or exemplary damages are intended to punish the breaching party for egregious conduct. By waiving these types of damages, the agreement aims to limit the potential financial exposure of both parties and promote a more predictable resolution of disputes.

However, it's important to note that this waiver does not prevent either party from recovering actual damages, which are the direct losses suffered as a result of the other party's actions. Additionally, this limitation typically applies to disputes between the Franchisor and the Developer/Franchisee themselves. A prospective franchisee should consult with a legal professional to fully understand the implications of this clause and how it might affect their rights and obligations under the franchise agreement. This type of waiver is relatively common in franchise agreements to provide more certainty and predictability in potential litigation.