According to the Kitchen Solvers agreement, what is waived regarding damages?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 16(I) of the Franchise Agreement requires the franchisee to consent to a waiver of exemplary and punitive damages. This Section is hereby amended with the following language:
Provisions requiring the franchisee to consent to a waiver of exemplary and punitive damages are in violation of California Corporations Code section 31521.
All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the California Corporations Code section 31201 and 31521.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the franchise agreement initially requires franchisees to consent to a waiver of exemplary and punitive damages. However, this requirement is amended for franchisees in California, as provisions mandating such a waiver are considered a violation of California Corporations Code section 31521. Therefore, Kitchen Solvers franchisees in California are not required to waive exemplary and punitive damages, and all representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability do not act as a release, estoppel, or waiver of any liability incurred under the California Corporations Code sections 31201 and 31521.
For franchisees in Minnesota, the FDD states that Minnesota Statutes prohibit Kitchen Solvers from requiring the franchisee to consent to liquidated damages or termination penalties. Additionally, no part of the agreement can reduce any of a franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or a franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
For franchisees in New York, any provision in the Franchise Agreement requiring the franchisee to sign a general release of claims against the franchisor does not release any claim the franchisee may have under New York General Business Law, Article 33, Sections 680-695. Additionally, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by the franchisor.
These stipulations ensure that franchisees retain certain rights and protections under state laws, preventing a complete waiver of damages or liabilities in specific situations. Prospective franchisees should carefully review the addenda applicable to their state to understand the specific waivers and limitations that apply to their franchise agreement.