In states that do not allow the exclusion or limitation of liability for consequential or incidental damages, how is Chem Dry's liability limited?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
(c) 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 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, in states that do not allow the exclusion or limitation of liability for consequential or incidental damages, Chem Dry's liability is limited to the extent permitted by law. This means that the specific limitations on liability will depend on the laws of the particular state in question.
For a prospective Chem Dry franchisee, this implies that the extent to which Chem Dry can be held liable for damages may vary depending on the state in which they operate their franchise. In some states, Chem Dry may have significant limitations on its liability, while in others, its liability may be more extensive.
It is important for prospective franchisees to understand the laws of their specific state regarding limitations on liability, as this could have a significant impact on their legal rights and remedies in the event of a dispute with Chem Dry. Franchisees should consult with an attorney to determine the specific limitations on liability that apply in their state.