How is Chem Dry's liability limited in states that do not allow the exclusion or limitation of liability for consequential or incidental damages?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
IN NO EVENT WILL CDI'S MAXIMUM AGGREGATE LIABILITY EXCEED THE TOTAL AMOUNT PAID BY YOU TO CDI FOR THE SERVICE DURING THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO LIABILITY. BECAUSE SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES, IN SUCH STATES, OUR LIABILITY IS LIMITED TO THE EXTENT PERMITTED BY LAW.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the franchisor's liability is limited to the extent permitted by law in states that do not allow the exclusion or limitation of liability for consequential or incidental damages. This means that while Chem Dry attempts to limit its liability for certain types of damages, these limitations may not be fully enforceable in states with laws that protect consumers or franchisees from such exclusions.
For a prospective Chem Dry franchisee, this implies that the degree of protection offered by the franchise agreement's liability limitations can vary depending on the state in which they operate. In states where such limitations are restricted, franchisees may have more legal recourse against Chem Dry for consequential or incidental damages than in states where these limitations are fully enforceable.
It is important for potential franchisees to understand the specific laws in their state regarding liability limitations and to consult with legal counsel to assess the potential risks and benefits associated with this aspect of the franchise agreement. This ensures that franchisees are aware of their rights and the extent to which Chem Dry can be held liable for damages.