Do franchisees waive their right to punitive damages against Kitchen Solvers in the event of a dispute?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
- L. WAIVER OF PUNITIVE DAMAGES. THE PARTIES (AND THEIR RESPECTIVE OWNERS AND PERSONAL GUARANTORS, IF APPLICABLE) HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO OR CLAIM FOR ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE OTHER AND AGREE THAT IN THE EVENT OF A DISPUTE BETWEEN THEM, EACH WILL BE LIMITED TO THE RECOVERY OF ACTUAL DAMAGES SUSTAINED BY IT.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, franchisees, along with their owners and personal guarantors, waive their right to claim punitive or exemplary damages against Kitchen Solvers in the event of a dispute. This waiver is applicable to the fullest extent permitted by law, meaning that the specific enforceability of the waiver may depend on the laws of the jurisdiction governing the franchise agreement.
This waiver means that a Kitchen Solvers franchisee is limited to recovering only the actual damages they sustain in a dispute with Kitchen Solvers. Actual damages typically include direct financial losses, such as lost profits or expenses incurred due to the franchisor's actions. However, they do not include damages intended to punish the franchisor for particularly egregious behavior.
The inclusion of such a waiver is relatively common in franchise agreements. By agreeing to this provision, a prospective Kitchen Solvers franchisee gives up the potential for a larger monetary award in a dispute, which could be a significant consideration depending on their risk tolerance and assessment of the potential for disputes with Kitchen Solvers.