How is CDI's (Chem Dry) liability limited in states that do not allow the exclusion or limitation of liability for consequential or incidental damages?

According to Chem Dry's 2024 Franchise Disclosure Document, the franchise agreement includes a limitation of liability clause. Chem Dry states that they, along with their vendors, officers, agents, or employees, will not be liable for any indirect, incidental, special, consequential, or exemplary damages. This includes damages for loss of profits, goodwill, use, content, or other intangible losses, even if Chem Dry was aware of the possibility of such damages. This limitation applies to issues such as the use or inability to use the service, the cost of substitute goods or services, unauthorized access to transmissions or content, third-party actions, or any other matter related to the service. Chem Dry also specifies they are not liable for business interruptions, access delays, content issues, or events beyond their control.

However, the clause also acknowledges that some states do not allow the exclusion or limitation of liability for consequential or incidental damages. In these states, Chem Dry's liability is limited to the extent permitted by law. This means that while Chem Dry aims to limit its liability as much as possible, the specific legal restrictions of each state will take precedence.

For a prospective Chem Dry franchisee, this means that the extent of Chem Dry's liability can vary depending on the state in which they operate. In states that allow for broad liability limitations, Chem Dry's exposure is minimized. In states with stricter consumer protection laws, Chem Dry's liability may be greater. Franchisees should be aware of the laws in their specific state and how they might affect the enforceability of the liability limitations in the franchise agreement.