Does Exit waive rights against the franchisee for damages to the extent covered by insurance?

According to Exit's 2025 Franchise Disclosure Document, Exit, the subfranchisor, and the franchisee mutually waive rights against each other for damages, but only to the extent that the damages are covered by insurance. This waiver is reciprocal, applying to all parties involved.

This means that if a situation arises where damages occur and are covered by an insurance policy, none of the parties (Exit, the subfranchisor, or the franchisee) can sue each other for those specific damages. The insurance coverage is intended to be the primary means of compensation in such cases.

However, it's important to note that this waiver is limited to the extent of the insurance coverage. If damages exceed the insurance coverage limits, the parties may still have rights against each other for the uncovered portion of the damages. Franchisees should ensure they understand the scope and limits of their insurance policies to fully grasp the implications of this waiver.