Does the Hyper Kidz franchise agreement include a waiver of punitive damages by both parties?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
22.1 Waiver of Obligations
- 22.1.1 We and you may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement. Such waiver shall be effective upon delivery of written notice thereof to the other or such other effective date stated in the notice of waiver. Whenever this Agreement requires our prior approval or consent, you shall make a timely written request therefor and such approval shall be obtained in writing.
- 22.1.2 We make no warranties or guarantees upon which you may rely and assume no liability or obligation to you by granting any waiver, approval, or consent to you or by reason of any neglect, delay, or denial of any request therefor. Any waiver granted by us shall be without prejudice to any other rights we may have, will be subject to continuing review by us and may be revoked in our sole discretion at any time and for any reason effective upon delivery to you of ten (10) days' prior written notice.
- 22.1.3 We and you shall not be deemed to have waived or impaired any right, power, or option reserved by this Agreement including, without limitation, the right to demand exact compliance with every term, condition, and covenant herein, or to declare any breach thereof to be a default and to terminate this Agreement prior to the expiration of its term by virtue of any (a) custom or practice of the parties at variance with the terms hereof; (b) any failure, refusal, or neglect of us or you to exercise any right under
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
Based on the 2024 Hyper Kidz Franchise Disclosure Document excerpts, there is no mention of a waiver of punitive damages by either the franchisor or franchisee. The document does include information on waivers of obligations, where both parties may unilaterally waive or reduce any obligation or restriction upon the other under the agreement via written instrument. However, this section pertains to waiving specific contractual obligations, not legal rights to pursue damages. The FDD also includes information on indemnification, where the franchisee agrees to exonerate and indemnify the franchisor from claims related to the franchisee's business operations. However, this does not constitute a mutual waiver of punitive damages.
Without explicit mention of a punitive damages waiver, prospective Hyper Kidz franchisees should be aware that they may be subject to such damages in legal disputes, depending on the circumstances and applicable laws. Similarly, the franchisor retains the right to seek punitive damages from franchisees under appropriate conditions.
Therefore, it is important for a prospective franchisee to seek clarification from Hyper Kidz regarding whether the franchise agreement includes any provisions related to the waiver of punitive damages. Understanding the presence or absence of such a waiver is crucial for assessing the potential financial risks associated with the franchise.