What is the maximum cumulative aggregate liability of GIFT'S to Dq Treat franchisees and sub-franchisees under the Participation Agreement, excluding claims related to cards issued to Participating Franchisees?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
vided by GIFT, if the infringement or misappropriation would not have occurred but for such use or combination, or (iii) modifications or development requested by Client or Operated Locations, Participating Franchisee or Sub-Franchisee, using designs, instructions or specifications provided or approved by Client or Operated Locations, Participating Franchisee or Sub-Franchisee. Operated Locations, Participating Franchisee or Sub-Franchisee agrees to indemnify GIFT, its directors, officers, employees and agents from and against all third party claims, losses, liabilities and damages (including reasonable attorneys' fees and costs of settlement) resulting from or arising out of any allegation that materials supplied by Client or Operated Locations, Participating Franchisee or Sub-Franchisee (including trademarks, artwork, designs and specifications) misappropriate or infringe such third party's U.S. copyright, trademark, patent or other intellectual property right, except to the extent that such alleg
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 Franchise Disclosure Document, GIFT'S (First Data Resources, LLC) cumulative aggregate liability to Dq Treat franchisees and sub-franchisees under the Participation Agreement is limited to actual direct damages. This liability will not exceed $3,000,000.
However, this limitation does not include any liability for claims arising out of or relating to the cards issued to Participating Franchisees from Client (DQ GC Inc.).
For example, if Client and two additional Operated Locations, Participating Franchisee and Sub-Franchisees participate in the Program, GIFT'S cumulative aggregate liability to Client and such Operated Locations, Participating Franchisee and Sub-Franchisees for actual direct damages will not exceed $3,000,000 and will not include any liability for claims arising out of or relating to services and/or items supplied by Client or third parties. This means that the $3,000,000 cap is shared across all participating locations and the client, and excludes liabilities related to the cards themselves or services/items supplied by the client or third parties.