Under what circumstances is PAR's liability NOT limited for Dq Treat participating locations regarding equipment?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
THE LIMITATIONS IN THIS SECTION DO NOT APPLY TO EITHER PARTY'S LIABILITY FOR ITS (OR ITS RESPECTIVE AGENTS AND/OR SUBCONTRACTORS) GROSS NEGLIGENCE OR WILFULL MISCONDUCT, WILFUL FAILURE TO COMPLY WITH LAW, FRAUD, INTELLECTUAL PROPERTY INFRINGEMENT, BODILY INJURY (INCLUDING DEATH) OR DAMAGE TO OR LOSS OF ANY TANGIBLE PROPERTY.
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, there are specific circumstances where PAR's liability is not limited regarding equipment provided to participating locations. Generally, PAR's liability is capped at $50,000 annually. However, this limitation does not apply in cases of gross negligence, willful misconduct, or violation of law by PAR or its agents. Additionally, liability is not limited for fraud, intellectual property infringement, bodily injury (including death), or damage to or loss of tangible property.
This means that if PAR's actions or inactions directly cause significant harm through negligence or intentional misconduct, Dq Treat franchisees may be able to recover damages exceeding the standard $50,000 limit. This could include situations where faulty equipment leads to customer injury or property damage due to PAR's negligence in maintenance or repair.
It is important for prospective Dq Treat franchisees to understand these exceptions to the liability limitations, as they provide a degree of protection against severe damages resulting from PAR's actions. Franchisees should consult with legal counsel to fully understand their rights and obligations under the participation agreement.