Does the limitation on liability apply to Acumera's fraud regarding Dq Treat?

According to Dq Treat's 2025 Franchise Disclosure Document, the limitations on liability do not apply to Acumera's fraud. Specifically, the FDD states that the limitations outlined in Section 18 do not extend to liability for fraud committed by either party, including their agents or subcontractors. This means that if Acumera, its agents, or subcontractors engage in fraudulent activities, they will be held liable, and the standard limitations on liability will not protect them.

This provision is important for prospective Dq Treat franchisees because it offers a degree of protection against potential misconduct by Acumera, a third-party vendor providing services to the franchise. It ensures that Acumera cannot hide behind liability limitations if they commit fraud that harms the franchisee's business. This could include financial fraud, data manipulation, or other deceptive practices.

It is important to note that this exception to the liability limitations applies specifically to fraud, gross negligence, willful misconduct, and willful failure to comply with the law. Other types of claims against Acumera may still be subject to the limitations described in the FDD, such as those related to lost profits, data loss, or service interruptions. Franchisees should carefully review the entire Item 17 to understand the full scope of these limitations and exceptions.

This type of clause is relatively common in franchise agreements, as it aims to balance the need to protect both parties from excessive liability while ensuring accountability for serious misconduct. Franchisees should consult with legal counsel to fully understand their rights and obligations under the franchise agreement and any related agreements with third-party vendors like Acumera.