Are there any exceptions to the waiver of punitive damages in a dispute with Crave Cookies?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.2 Damages. In any controversy or claim arising out of or relating to this Agreement, each party waives, to the fullest extent permitted by law, any right to punitive, exemplary, incidental, indirect, special, consequential or other similar damages, including, but not limited to, loss of profits, against the other and agrees that, in the event of a Dispute between them, the party making a claim will be limited to equitable relief and to the recovery of actual damages sustained, without limiting Franchisee's obligation to indemnify Crave Cookies Franchising pursuant to this Agreement, or other monetary damages not measured by the prevailing party's actual damages, except damages expressly authorized by federal statute and damages expressly authorized by this Agreement.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, both parties waive the right to punitive, exemplary, incidental, indirect, special, consequential, or other similar damages in any dispute related to the Franchise Agreement. This waiver is to the fullest extent permitted by law.
However, there are exceptions to this waiver. The waiver does not apply to damages expressly authorized by federal statute and damages expressly authorized by the Franchise Agreement. In the event of a dispute, the claiming party is limited to equitable relief and the recovery of actual damages sustained. This does not limit the franchisee's obligation to indemnify Crave Cookies or other monetary damages not measured by the prevailing party's actual damages.
This means that while franchisees generally cannot seek punitive or similar damages from Crave Cookies, there are specific instances where such damages might be recoverable if explicitly allowed by federal law or the franchise agreement itself. Franchisees are primarily limited to recovering direct, actual losses they incur. It is important to carefully review the franchise agreement and any applicable federal statutes to understand the full scope of these exceptions.