What rights to punitive, exemplary or consequential damages do the parties waive in a dispute related to a Buona franchise?

According to Buona's 2025 Franchise Disclosure Document, both Buona and the franchisee waive, to the fullest extent permitted by law, any right to or claim of any consequential, punitive, or exemplary damages against the other. This means that in the event of a dispute, both parties are limited to recovering only the actual damages they sustained.

This waiver has significant implications for prospective Buona franchisees. It means that if Buona breaches the franchise agreement, the franchisee will only be able to recover direct losses, such as lost profits or expenses incurred as a result of the breach. The franchisee will not be able to recover damages that are intended to punish Buona for its conduct (punitive damages) or damages that are intended to compensate the franchisee for losses that are indirect or speculative (consequential or exemplary damages).

The waiver of consequential, punitive, and exemplary damages is a common provision in franchise agreements. Franchisors often include this provision to limit their potential liability in the event of a dispute. However, franchisees should carefully consider the implications of this waiver before signing a franchise agreement, as it could limit their ability to recover damages if the franchisor breaches the agreement.

It is important for prospective Buona franchisees to understand the types of damages that are being waived and to assess the potential impact of this waiver on their business. Franchisees may want to consult with an attorney to discuss the implications of this waiver and to determine whether it is in their best interests to sign a franchise agreement that includes this provision.