What section of the Hydrodog Franchise Agreement addresses waivers of punitive damages?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Waivers of Punitive Damages. The following is added to Section 21.10 of the Agreement:
Be advised that any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of Illinois is void. No person may be prevented from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under any of the provisions of the Illinois Franchise Disclosure Act, nor shall arbitration of any claim pursuant to the provisions of Title 9 of the United States Code be prevented.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Section 21.10 of the Franchise Agreement addresses waivers of punitive damages. However, this section is amended by adding a provision that any condition, stipulation, or provision requiring a waiver of compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This means that if a Hydrodog franchise is purchased in Illinois, the franchisee cannot be forced to waive their rights under Illinois franchise law.
Furthermore, the amendment clarifies that no person can be prevented from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under the Illinois Franchise Disclosure Act. Additionally, arbitration of any claim under Title 9 of the United States Code cannot be prevented. This ensures that franchisees in Illinois retain their legal rights and options, even within the context of the franchise agreement.
This type of clause is included to comply with state franchise laws, which often prohibit the waiver of certain franchisee rights. Prospective Hydrodog franchisees should carefully review these state-specific amendments to understand their rights and obligations, particularly if they are purchasing a franchise in a state with strong franchise protection laws like Illinois.