What is the maximum aggregate liability of Chem Dry in relation to the service provided?

According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry'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 limitation applies to any claims arising from the service provided to the franchisee. However, this limitation may vary depending on the state where the franchise operates.

This means that if a Chem Dry franchisee experiences an issue with the service provided by Chem Dry and seeks to recover damages, the maximum amount they can recover from Chem Dry will be capped at the amount they paid for the service in the year leading up to the event. This could potentially leave the franchisee bearing the brunt of any significant losses exceeding that amount.

It's important to note that some states do not allow the exclusion or limitation of liability for consequential or incidental damages. In such states, Chem Dry's liability is limited to the extent permitted by law. This implies that the actual liability could be higher or lower depending on the specific state's regulations and legal precedents.

Prospective Chem Dry franchisees should be aware of this limitation of liability and consider its potential impact on their business. They should also consult with legal counsel to understand how this limitation applies in their specific state and what options they have to mitigate any potential risks.