Does the Dog Haus agreement allow for waivers of punitive or exemplary damages?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and Area Developer, for themselves, and for and on behalf of the Franchisor Owners and the Owners, respectively, hereby waive to the fullest extent permitted by Applicable Law, any right to, or claim for, punitive or exemplary damages against the other and agree that, in the event of a dispute between them, Franchisor and Area Developer shall each be limited to recovering only the actual damages proven to have been sustained by that Party, except as provided in Section 15.5.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to the 2025 Dog Haus Franchise Disclosure Document, the agreement includes a waiver of punitive or exemplary damages. Specifically, Dog Haus and the Area Developer agree to waive any right to claim punitive or exemplary damages against each other, to the extent permitted by applicable law. In the event of a dispute, both parties are limited to recovering only the actual damages proven to have been sustained, except as provided in Section 15.5 of the agreement.
This waiver means that a franchisee cannot seek additional damages beyond their actual losses in a legal dispute with Dog Haus, such as damages intended to punish the other party. This could limit the potential financial recovery for a franchisee in certain situations where the franchisor's conduct is particularly egregious, but it also protects the franchisee from similar claims by Dog Haus.
Waivers of punitive damages are relatively common in franchise agreements. Franchisees should be aware of this limitation and consider its potential impact before entering into an agreement. It is important to consult with a legal professional to fully understand the implications of this waiver and how it may affect their rights and remedies under the franchise agreement.