Do the parties waive exemplary and punitive damages in the Crave Cookies franchise agreement?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2. Amendments. The Agreement (and any Guaranty Agreement) is amended to comply with the following:
- (7) Waiver of Exemplary and Punitive Damages: The parties do not waive exemplary and punitive damages.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to the 2025 Crave Cookies FDD, the parties do not waive exemplary and punitive damages in North Dakota. The North Dakota Rider to the Franchise Agreement and Multi-Unit Development Agreement states that franchisees and any guarantors are not required to sign a general release.
This means that a Crave Cookies franchisee in North Dakota retains the right to seek exemplary and punitive damages in disputes with the franchisor. Exemplary and punitive damages are awarded in addition to actual damages and are intended to punish the wrongdoer for particularly egregious behavior.
This protection is specific to North Dakota, as it is part of the state-specific rider that modifies the standard franchise agreement to comply with North Dakota law. Franchisees in other states may be subject to different terms regarding waivers of exemplary and punitive damages, so it's important to review any state-specific addenda to the franchise agreement carefully.