Does the Byrider franchise agreement allow for claims of punitive damages?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.8 Punitive Damage Waiver. The Company and the Franchisee irrevocably waive any claim to punitive damages in any action, proceeding or counterclaim, whether at law or in equity brought by either of them.
NORTH DAKOTA
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- WAIVER OF PUNITIVE DAMAGES AND JURY TRIAL. Section 20.7 and Section 20.8 of the Franchise Agreement are deleted in their entirety.
The arbitrator has the right to award or include in his or her award any relief which he or she deems proper, including, without limitation, money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs, provided that the arbitrator may not declare any mark generic or otherwise invalid or, except as expressly provided in Section 20.8 below, award any punitive, exemplary or multiple damages against either party (each party hereby waiving to the fullest extent permitted by law, except as provided in Section 20.8 below, any right to or claim for any punitive or exemplary damages against the other).
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the standard franchise agreement includes a waiver where both Byrider and the franchisee irrevocably waive any claim to punitive damages in any action, proceeding, or counterclaim, whether at law or in equity. This is detailed in Section 20.8 of the agreement.
However, this waiver is not absolute. In North Dakota, Section 20.7 and Section 20.8 of the Franchise Agreement, which include the waiver of punitive damages, are deleted in their entirety. This means that franchisees in North Dakota are not bound by the punitive damage waiver and may be able to pursue such claims.
The arbitrator in any dispute has the right to award any relief deemed proper, including money damages, specific performance, injunctive relief, and attorneys' fees and costs. However, the arbitrator cannot award punitive, exemplary, or multiple damages against either party, except as expressly provided in Section 20.8, reinforcing the general waiver of such damages unless otherwise specified by law, such as in the case of North Dakota franchisees.