factual

Does Cd One Price Cleaners waive trial by jury in any action against the franchisee?

Cd_One_Price_Cleaners Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 23.5 Limitation of Adjudicative Proceedings. FRANCHISOR AND FRANCHISEE IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER OF THEM AGAINST THE OTHER, WHETHER OR NOT THERE ARE OTHER PARTIES IN SUCH ACTION OR PROCEEDING. EXCEPT FOR FRANCHISEE'S OBLIGATION TO INDEMNIFY FRANCHISOR AND THE OTHER INDEMNIFIED PARTIES PURSUANT TO

SECTION 18.4 AND CLAIMS FOR UNAUTHORIZED USE OF THE PROPRIETARY MARKS OR UNAUTHORIZED USE OR DISCLOSURE OF ANY CONFIDENTIAL INFORMATION, FRANCHISOR AND FRANCHISEE IRREVOCABLY WAIVE ANY RIGHT TO OR CLAIM OF ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE OTHER, AND AGREE THAT, IN THE EVENT OF A DISPUTE BETWEEN THEM, EACH SHALL BE LIMITED TO THE RECOVERY OF ANY ACTUAL DAMAGES SUSTAINED BY IT.

Source: Item 23 — Receipts (FDD pages 72–263)

What This Means (2025 FDD)

According to the 2025 FDD, Cd One Price Cleaners includes a clause in its franchise agreement that requires both the franchisor and franchisee to irrevocably waive their rights to a trial by jury. This waiver applies to any action, proceeding, or counterclaim brought by either party against the other, regardless of whether other parties are involved in the action. This waiver extends to proceedings in law or equity.

This means that any disputes between Cd One Price Cleaners and its franchisees will be resolved by a judge rather than a jury. This can have significant implications for franchisees, as a judge may have different perspectives and biases than a jury of their peers. Jury trials can be more expensive and time-consuming than bench trials (trials before a judge only), but they also offer the potential for a more sympathetic hearing, especially in cases where the franchisee feels they have been treated unfairly.

Additionally, Cd One Price Cleaners and the franchisee also waive the right to claim punitive or exemplary damages against each other, limiting recovery to actual damages sustained, except for the franchisee's obligation to indemnify the franchisor, claims for unauthorized use of proprietary marks, or unauthorized use/disclosure of confidential information. This limitation on damages could impact the potential financial recovery in case of a dispute, potentially reducing the leverage a franchisee has in negotiations or litigation with Cd One Price Cleaners.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.