Are there any exceptions to the waiver of punitive damages between Cream and the franchisee?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
H. WAIVER OF PUNITIVE DAMAGES, JURY TRIAL, AND CLASS ACTION.
Except for your obligation to indemnify us for third party claims under Section 6.C, 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 us and you, 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 proceeding brought by either of us.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, both Cream and the franchisee waive the right to claim punitive or exemplary damages against each other in the event of a dispute. This waiver is applicable to the fullest extent permitted by law. However, there is an exception: the franchisee's obligation to indemnify Cream for third-party claims.
This means that while Cream and its franchisees generally cannot seek punitive damages from each other, this limitation does not apply if the franchisee is required to cover Cream's losses resulting from claims made by someone not party to the franchise agreement. In such cases, the franchisee may be liable for damages beyond actual losses.
In any dispute between Cream and the franchisee, the claiming party is limited to equitable relief and recovery of actual damages sustained. Both Cream and the franchisee also irrevocably waive their right to a jury trial in any proceeding brought by either party. This agreement extends to the franchisee's owners as well.