What is the maximum aggregate liability of CDI (Chem Dry) regarding the service provided?

According to Chem Dry's 2024 Franchise Disclosure Document, the company's maximum aggregate liability is limited to the total amount the franchisee paid to Chem Dry for the service during the 12 months immediately preceding the event that led to the liability. This means that if a franchisee experiences an issue with the service provided by Chem Dry, the maximum amount they can recover from Chem Dry is capped at what they paid for the service in the previous year.

This limitation of liability is a risk factor for potential Chem Dry franchisees. It means that Chem Dry is not liable for indirect, incidental, special, consequential, or exemplary damages, even if Chem Dry was aware such damages were possible. This includes damages for loss of profits, goodwill, use, content, or other intangible losses.

However, the FDD also states 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 the specific limitation of liability may vary depending on the franchisee's location.

This type of limitation of liability is relatively common in franchise agreements. It is important for prospective franchisees to understand the implications of this clause and to consider seeking legal advice to fully understand their rights and obligations.