Does the Chesters franchise agreement include a waiver of jury trial?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Waiver of Punitive Damages and Jury Trial. EXCEPT FOR YOUR OBLIGATION TO INDEMNIFY US FOR THIRD-PARTY CLAIMS, AND EXCEPT FOR OUR CLAIMS AGAINST YOU FOR MISUSE OF OUR INTELLECTUAL PROPERTY, WE AND YOU (AND YOUR OWNERS) WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR CLAIM FOR ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE OTHER AND AGREE THAT, IN THE EVENT OF A DISPUTE BETWEEN YOU AND US, THE PARTY MAKING A CLAIM WILL BE LIMITED TO EQUITABLE RELIEF AND TO RECOVERY OF ANY ACTUAL DAMAGES IT SUSTAINS. WE AND YOU IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER YOU OR US.
-
- Governing Law. Except to the extent governed by United States federal law, this Agreement, the license, and all claims arising from or relating to the relationship between you and us shall be governed, interpreted, and construed under the laws of the State of Alabama, without reference to principles of conflicts of law. However, if the laws of the state where the Restaurant is located require interpretation and construction of this Agreement pursuant to the laws of that state, then this Agreement shall be deemed modified to comply with the applicable provision of that state law regarding such interpretation and construction.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to the 2025 Chesters Franchise Disclosure Document, the franchise agreement does contain a waiver of jury trial. Specifically, Chesters and the franchisee both irrevocably waive trial by jury in any action, proceeding, or counterclaim brought by either party. This waiver applies to the fullest extent permitted by law.
However, the FDD also notes some limitations to this waiver, particularly in the state of Washington. Provisions in the franchise agreement that restrict rights or remedies under the Washington Franchise Investment Protection Act, such as the right to a jury trial, may not be enforceable. This suggests that while a general jury trial waiver exists, its applicability may be limited by state laws like those in Washington.
Additionally, the agreement specifies that Chesters and the franchisee waive any right to punitive or exemplary damages against each other, except for the franchisee's obligation to indemnify Chesters for third-party claims and Chesters' claims against the franchisee for misuse of intellectual property. In the event of a dispute, the claiming party is limited to equitable relief and recovery of actual damages sustained.
Prospective franchisees should be aware of these jury trial and punitive damages waivers, understanding that their legal recourse options may be limited to certain types of relief and that state laws may provide additional protections or limitations. It is advisable to consult with a legal professional to fully understand the implications of these waivers in the context of their specific circumstances and the laws of their state.