What is the definition of 'fraud' that would negate the liability limitations for Acumera regarding Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
THE LIMITATIONS IN THIS SECTION 18 DO NOT APPLY TO EITHER PARTY'S LIABILITY FOR ITS (OR ITS RESPECTIVE AGENT'S AND/OR SUBCONTRACTOR'S) GROSS NEGLIGENCE OR WILFULL MISCONDUCT, WILFUL FAILURE TO COMPLY WITH LAW, FRAUD.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 FDD, the limitations on liability for Acumera, a service provider for Dq Treat franchisees, do not apply in cases of fraud. This means that if Acumera or its agents engage in fraudulent activities, the standard limitations on the types and amounts of damages that Acumera would otherwise be liable for would not be in effect.
For a Dq Treat franchisee, this is a significant protection. It means that if Acumera commits fraud that causes financial harm, the franchisee would have the right to pursue full legal recourse without being restricted by the liability limitations that are normally in place. This could potentially cover a wider range of damages and higher amounts than would otherwise be possible.
It is important for franchisees to understand what constitutes fraud in a legal context, as this exception to the liability limitations would only apply if Acumera's actions meet the legal definition of fraud. Franchisees should consult with legal counsel to fully understand their rights and the circumstances under which this exception would apply.
However, the FDD does not define what constitutes 'fraud' in this context. A prospective franchisee should seek clarification from Dq Treat or Acumera regarding the specific definition of fraud that would negate the liability limitations. Understanding this definition is crucial for assessing the potential risks and protections afforded under the franchise agreement.