Are there exceptions to the waiver of certain damages for Burneys Sweets More franchisees?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
xhibit L – Receipt
| WAIVER OF CERTAIN DAMAGES. EXCEPT FOR FRANCHISEE | |
|---|---|
| INDEMNIFYING PARTIES’ OBLIGATIONS TO INDEMNIFY FRANCHISOR | |
| INDEMNIFIED PARTIES UNDER THIS AGREEMENT AND ACTION FRANCHISOR | |
| BRINGS AGAINST FRANCHISEE (AND FRANCHISEE’S OWNERS, AFFILIATES, | |
| AND GUARANTORS, IF APPLICABLE) FOR UNAUTHORIZED USE OF THE MARKS, | |
| UNAUTHORIZED USE OR DISCLOSURE OF CONFIDENTIAL INFORMATION, OR | |
| BREACH OF NON-COMPETITION OR NON-SOLICITATION COVENANTS, | |
| FRANCHISOR AND FRANCHISEE (AND FRANCHISEE’S OWNERS, AFFILIATES, | |
| AND GUARANTORS, IF APPLICABLE) WAIVE ANY RIGHT TO OR CLAIM FOR | |
| PUNITIVE, CONSEQUENTIAL, EXEMPLARY, MULTIPLE, INCIDENTAL, OR | |
| OTHER DAMAGES IN EXCESS OF THE ECONOMIC DAMAGES ACTUALLY | |
| SUSTAINED BY THE PARTY, WHETHER ASSERTED AS A RELATED OR | |
| INDEPENDENT TORT, AS A BREACH OF CONTRACT, OR AS ANY OTHER CLAIM | |
| OR CAUSE OF ACTION BASED ON STATUTORY OR COMMON LAW. THE | |
| FOREGOING DOES NOT LIMITED THE PARTIES’ ABILITY TO SEEK EQUITABLE | |
| RELIEF. |
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, both the franchisor and franchisee waive the right to claim certain types of damages. However, there are specific exceptions to this waiver.
The waiver does not apply to the franchisee's obligation to indemnify Burneys Sweets More. Additionally, the waiver does not apply to actions Burneys Sweets More brings against the franchisee (and their owners, affiliates, and guarantors) for unauthorized use of the brand's marks, unauthorized use or disclosure of confidential information, or breach of non-competition or non-solicitation covenants.
Specifically, Burneys Sweets More and the franchisee still retain the right to seek equitable relief, notwithstanding the waiver of certain damages. This means that either party can ask a court to order the other party to take specific actions or to stop doing something, rather than just seeking monetary compensation.
In practical terms, this means that while a franchisee generally cannot seek punitive, consequential, or similar damages from Burneys Sweets More, there are important exceptions where such limitations do not apply, particularly when the franchisor is seeking to enforce brand standards, protect confidential information, or prevent unfair competition.