Does the Buona franchise agreement allow for the recovery of consequential damages in the event of a dispute?

According to Buona's 2025 Franchise Disclosure Document, the franchise agreement explicitly waives the right to claim consequential, punitive, or exemplary damages. In the event of a dispute between Buona and the franchisee, both parties are limited to recovering only the actual damages they sustained. This waiver applies to the fullest extent permitted by law.

This means that a Buona franchisee cannot seek compensation for indirect losses such as lost profits, reputational damage, or business interruption costs in a dispute with the franchisor. The franchisee is limited to recovering direct, out-of-pocket expenses that can be proven as a result of the dispute.

This limitation on damages is a significant factor for prospective franchisees to consider. It restricts the potential financial recovery in case of a disagreement with Buona, potentially leaving the franchisee to bear uncovered losses. While such waivers are not uncommon in franchise agreements, franchisees should carefully evaluate the potential risks and benefits before signing the agreement.