factual

In the event of a dispute between Cajun and the developer, what right have the parties waived regarding Churchs Chicken?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

  • D. DEVELOPER AND CAJUN WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT OR CLAIM OF ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST EACH OTHER AND AGREE THAT, IN THE EVENT OF A DISPUTE BETWEEN THEM, EACH SHALL BE LIMITED TO THE RECOVERY OF ACTUAL DAMAGES SUSTAINED BY IT.

DEVELOPER AND CAJUN WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO BRING, OR BE A CLASS MEMBER IN, ANY CLASS ACTION SUITS AND THE RIGHT TO TRIAL BY JURY.

Source: Item 23 — RECEIPT (FDD pages 68–406)

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, both the developer and Cajun have waived certain rights in the event of a dispute. Specifically, they have waived any right or claim to punitive or exemplary damages against each other. This means that if a dispute arises, neither party can seek damages intended to punish the other party beyond the actual financial losses incurred.

Furthermore, both the developer and Cajun have waived the right to bring or participate as a class member in any class action suits. This waiver also includes the right to a trial by jury. This means any disputes will be resolved individually, and likely through a bench trial (trial by judge) or alternative dispute resolution methods like arbitration.

These waivers are significant for a prospective Churchs Chicken franchisee as they limit the legal avenues and potential remedies available in case of a disagreement with the franchisor. Franchisees should carefully consider the implications of these waivers and consult with legal counsel to understand their rights and obligations under the development agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.