Does the Dq Treat Participation Agreement specify any limitations on the general indemnification obligations outlined in Section 10.1?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
nt; (x) improper handling or storage of the Equipment (including the AE Equipment) after acceptance of delivery and prior to installation; or (y) casualty, which shall include but not be limited to, fire, water, wind, flood, lightning, civil disturbance, war, terrorism or other catastrophes or similar causes; (B) PAR shall not be liable for any damage resulting from the failure of the Equipment (including AE Equipment) to comply with local laws or regulations; and (C) Participating Location will be responsible for the cost of a return visit for RMS Service if prompt and safe access to the RMS Equipment is not allowed or is materially hampered by the Participating Location upon the field service technician's arrival at the Participating Location.
**(c) EACH PARTY'S MAXIMUM ANNUAL L
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 does include limitations on liability, but these limitations do not apply to certain situations. Specifically, Section (c) states that neither party's aggregate annual calendar year liability to the other party in connection with the Participation Agreement will exceed $50,000. This limit includes all direct, consequential, or indirect damages related to breach of contract, warranty, tort, negligence, failure to warn, or strict liability.
However, the $50,000 limitation and other limitations outlined in Section (b) do not apply to liability for gross negligence, willful misconduct, willful failure to comply with the law, fraud, intellectual property infringement, bodily injury (including death), or damage to or loss of tangible property. This means that Dq Treat franchisees could face significantly higher liability in these specific cases, potentially exceeding the stated $50,000 annual cap.
In summary, while there is a general cap on annual liability under the Participation Agreement, Dq Treat franchisees should be aware of the exceptions for more serious misconduct or damages, which could expose them to substantial financial risk beyond the stated limitation. Franchisees should consult with a legal professional to fully understand their indemnification obligations and potential liabilities under the Participation Agreement.