Does Kitchen Solvers require franchisees to waive claims for punitive 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.
Nothing in the Franchise Agreement prevents the franchisee from bringing a lawsuit in California for claims arising under the California Corporations Code section 31201 and 31521.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers Franchise Disclosure Document, the franchise agreement initially contains a clause requiring franchisees to waive their right to exemplary and punitive damages. However, this requirement is subject to certain state-specific addenda that modify or eliminate this waiver in specific jurisdictions.
For instance, the addendum for California states that provisions requiring a waiver of exemplary and punitive damages are in violation of California Corporations Code section 31521, and any representations requiring a release, estoppel, or waiver of liability do not apply to liabilities incurred under California Corporations Code sections 31201 and 31521. Similarly, the North Dakota addendum explicitly states that the waiver of exemplary and punitive damages will not apply to North Dakota franchisees and is considered deleted from the disclosure document and franchise agreement.
In summary, while the standard Kitchen Solvers franchise agreement includes a waiver of punitive damages, this provision is not universally enforced. Prospective franchisees should carefully review the addendum specific to their state to understand whether this waiver applies to them, as state laws may override the standard agreement. Franchisees in California and North Dakota, for example, are protected from this waiver due to state-specific regulations.