Are there any exceptions to the waiver of punitive damages for Desi District franchisees?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.2 Damages. In any controversy or claim arising out of or relating to this Agreement, each party waives any right to punitive 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 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, both the franchisor and franchisee waive the right to seek punitive damages in disputes related to the franchise agreement. This means that neither party can claim damages intended to punish the other party beyond the actual losses incurred.
However, there are specific exceptions to this waiver. The waiver does not apply to damages expressly authorized by federal statute or damages expressly authorized by the Desi District franchise agreement itself. This means that if a federal law allows for punitive damages in a particular type of dispute, or if the franchise agreement specifically outlines situations where such damages are permitted, the waiver will not be enforced.
This clause is fairly standard in franchise agreements, aiming to limit the financial risk and exposure of both parties in case of disputes. Prospective Desi District franchisees should be aware of these exceptions and consult with legal counsel to fully understand their rights and obligations under the agreement.