Does the Participation Agreement for Dq Treat allow for liability claims related to lost profits?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
In no event will any party to this Participation Agreement, their affiliates, or any of their respective officers, directors, employees, or agents be liable for lost profits, lost business opportunities, lost revenues, exemplary, punitive, special, incidental, indirect or consequential damages or the like, each of which is excluded by agreement of the parties regardless of whether such damages were foreseeable or whether a party has been advised of the possibility thereof.
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 Dq Treat's 2025 Franchise Disclosure Document, the Participation Agreement explicitly excludes liability for lost profits. Specifically, the agreement states that no party involved, including affiliates, officers, directors, employees, or agents, can be held liable for lost profits, lost business opportunities, lost revenues, or any form of indirect or consequential damages. This exclusion applies regardless of foreseeability or prior notice of potential damages.
This clause significantly limits the potential financial recovery for a Dq Treat franchisee in case of disputes or issues arising from the Participation Agreement. Even if a franchisee experiences substantial lost profits due to circumstances related to the agreement, they are contractually barred from claiming these losses from Dq Treat. This is a notable risk factor for prospective franchisees, as it shifts the burden of potential business losses onto the franchisee.
Such limitations of liability are relatively common in franchise agreements. Prospective Dq Treat franchisees should carefully consider this exclusion and its potential impact on their business. It would be prudent to seek legal counsel to fully understand the implications of this clause and to assess the overall risk associated with the franchise agreement.