Can a franchisee claim punitive damages in an action against Byrider?

According to Byrider's 2025 Franchise Disclosure Document, franchisees generally waive the right to claim punitive damages in any action against Byrider. Specifically, Section 20.8 of the Franchise Agreement states that both Byrider and the franchisee "irrevocably waive any claim to punitive damages in any action, proceeding or counterclaim". This waiver applies whether the action is at law or in equity. This means that, in most cases, a franchisee cannot seek punitive damages from Byrider, and Byrider cannot seek punitive damages from the franchisee.

However, there are exceptions to this waiver. For franchisees operating in North Dakota, Section 20.8 of the Franchise Agreement is deleted in its entirety, meaning that the punitive damage waiver does not apply. Similarly, for franchisees in Minnesota, the provisions of Section 20.8 are also deleted, meaning that the waiver of punitive damages is not in effect. These exceptions are noted in riders to the standard franchise agreement that address specific state law requirements.

It is important for prospective franchisees to understand these waivers and exceptions, as they can significantly impact the potential remedies available in case of a dispute with Byrider. Franchisees should consult with legal counsel to fully understand their rights and obligations under the Franchise Agreement, particularly in light of the specific laws of their state.