What specific claims are exempt from the punitive damages waiver in the Hydrodog franchise agreement?

According to Hydrodog's 2025 Franchise Disclosure Document, there are specific claims that are exempt from the punitive damages waiver within the franchise agreement. This means that in certain situations, either Hydrodog or the franchisee can still seek punitive damages, which are damages intended to punish the wrongdoer, in addition to compensation for actual losses.

The waiver does not apply to Hydrodog's right to seek punitive damages against the franchisee. The franchisee's waiver of punitive damages does not extend to claims made by Hydrodog against the franchisee. Additionally, the waiver does not apply to claims related to the franchisee's obligation to indemnify Hydrodog as outlined in the agreement. Indemnification generally involves compensating Hydrodog for losses or damages they incur due to the franchisee's actions or breaches of the agreement.

Furthermore, the waiver does not cover claims for unauthorized use of Hydrodog's trademarks, copyrights, or confidential information. It also does not apply to violations of non-competition covenants by the franchisee, their owners, officers, directors, employees, or agents. These covenants typically restrict the franchisee from engaging in competitive activities during and after the franchise term. However, the waiver of punitive or exemplary damages does apply to any claims Hydrodog may have against the franchisee.