Does the Burneys Sweets More franchise agreement include a waiver of consequential damages?

According to Burneys Sweets More's 2025 Franchise Disclosure Document, the franchise agreement addresses consequential damages in the context of a crisis situation. Specifically, if Burneys Sweets More establishes emergency procedures requiring a franchisee to temporarily close their shop to the public during a crisis, Burneys Sweets More will not be liable to the franchisee for any losses or costs, including consequential damages or lost profits. This means that a franchisee would not be able to recover losses such as lost revenue or other indirect costs resulting from a temporary closure mandated by Burneys Sweets More during a crisis.

This clause is important for prospective franchisees to consider, as it outlines a specific scenario where Burneys Sweets More is not responsible for certain types of financial losses a franchisee may incur. Crisis situations are defined broadly and include events that could negatively impact the franchisee, Burneys Sweets More, or the brand, such as contagious diseases, food poisoning, cyber attacks, natural disasters, or terrorist acts.

Franchisees should carefully evaluate their potential risk exposure in the event of a crisis and consider whether additional business interruption insurance is warranted to cover potential losses not recoverable from Burneys Sweets More. It is also important to understand what constitutes a "crisis" under the agreement and what types of emergency procedures Burneys Sweets More might implement. This waiver of consequential damages is specific to crisis situations where temporary closure is required and may not apply to other circumstances.