What is the time period used to calculate Chem Dry's maximum aggregate liability?

According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry's maximum aggregate liability is capped at the total amount the franchisee paid to Chem Dry for services during the twelve months immediately preceding the event that led to the liability. This limitation is outlined in the Software License Agreement, which governs the online software services provided by Chem Dry.

This means that if a franchisee experiences an issue with the Chem Dry software or services that results in a claim against the company, the maximum amount they can recover is limited to what they've paid for those services in the past year. This could be significantly less than the actual damages incurred, depending on the nature of the issue and the franchisee's business losses.

However, the FDD also notes that some states do not allow the exclusion or limitation of liability for consequential or incidental damages. In those states, Chem Dry's liability is limited to the extent permitted by law, which may provide franchisees with greater protection. Prospective franchisees should consult with a legal professional to understand how these limitations apply in their specific state and to assess the potential risks associated with this liability clause.