What is the definition of 'punitive damages' for which Acumera is not liable to Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
IN NO EVENT SHALL EITHER PARTY HAVE ANY LIABILITY TO THE OTHER PARTY OR ANY THIRD PARTY FOR ANY LOST PROFITS, LOSS OF DATA, LOSS OF USE, COSTS ASSOCIATED WITH INTEGRATION, INTERRUPTION OF BUSINESS, COSTS OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, OR FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES HOWEVER CAUSED AND, WHETHER IN CONTRACT, TORT OR UNDER ANY OTHER THEORY OF LIABILITY, WHETHER OR NOT THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
- 18.3.
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 Dq Treat FDD, Acumera is not liable to Dq Treat for punitive damages. The FDD specifies that neither party is liable to the other for any lost profits, loss of data, loss of use, costs associated with integration, interruption of business, costs of procurement of substitute goods or services, or for any indirect, special, incidental, punitive, or consequential damages. This limitation applies regardless of how the damages are caused and under any theory of liability, even if the party has been advised of the possibility of such damages.
This means that Dq Treat franchisees cannot seek punitive damages from Acumera, regardless of the circumstances. Punitive damages are intended to punish a party for egregious behavior, and this clause prevents Dq Treat franchisees from seeking such damages from Acumera. However, these limitations do not apply to either party's liability for gross negligence, willful misconduct, willful failure to comply with the law, or fraud.
This limitation of liability is a common practice in franchise agreements. It is important for prospective franchisees to understand the limitations of liability and to consider the potential risks and benefits of entering into a franchise agreement with Dq Treat. Franchisees should consult with an attorney to fully understand the implications of this clause.