Does the payment of liquidated damages affect Crepe De Licious's right to other remedies?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
The Area Developer acknowledges and agrees that such liquidated damages are a reasonable approximation of the damages the Franchisor will incur resulting from the premature termination of this Agreement as a result of breach by the Area Developer, are appropriate because actual damages incurred by the Franchisor will be difficult or impossible to ascertain, are not a penalty, and shall not affect the Franchisor's right to, and are not in lieu of, any other payment or remedy, damages or relief to the Franchisor.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious FDD, the payment of liquidated damages by an Area Developer does not affect Crepe De Licious's right to other remedies. The FDD states that the liquidated damages are not in lieu of any other payment, remedy, damages, or relief available to Crepe De Licious.
This means that even if an Area Developer pays liquidated damages upon termination of the agreement, Crepe De Licious still retains the right to pursue any other legal or equitable remedies available to them. This could include seeking additional damages, injunctive relief, or specific performance of the agreement.
For a prospective Crepe De Licious franchisee, this clause highlights the importance of fulfilling the obligations under the Area Development Agreement. Failure to do so could result in not only the payment of liquidated damages but also exposure to other legal actions and financial liabilities. Franchisees should carefully review the terms of the agreement and understand the potential consequences of a breach.