Are Face Foundrie franchisees entitled to receive punitive or exemplary damages from the franchisor?

According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees are not entitled to receive punitive or exemplary damages from the franchisor. The franchise agreement explicitly states that neither party has the right to collect such damages from the other. This waiver applies to claims arising between Face Foundrie and its franchisees.

This provision is a significant point for prospective franchisees to consider. By agreeing to the franchise terms, franchisees waive their right to seek punitive damages, which are intended to punish a party for egregious misconduct. This limitation could impact the potential financial recovery in the event of a dispute with Face Foundrie, even if the franchisor's actions are particularly harmful.

Furthermore, the agreement specifies that franchisees' recourse for claims is solely against Face Foundrie and its successors or assigns. The owners, directors, managers, officers, employees, and agents of Face Foundrie and its affiliates are not personally liable or to be named as parties in any action between the franchisor and the franchisee. This clause limits the scope of potential legal action and shields individuals associated with Face Foundrie from personal liability. Franchisees should be aware of these limitations and consider the implications for dispute resolution and potential legal remedies.

Such waivers of punitive damages are relatively common in franchise agreements. Prospective franchisees should carefully evaluate this and other dispute resolution terms with their legal counsel before investing in a Face Foundrie franchise.