Are there any exceptions to the damage waiver in the Kitchen Solvers franchise agreement?
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, there are specific exceptions to damage waivers, particularly concerning compliance with state franchise laws. For franchisees in California, provisions requiring a waiver of exemplary and punitive damages are not enforceable due to California Corporations Code section 31521. Similarly, general releases required for renewal, sale, or transfer do not apply to liabilities under the Maryland Franchise Registration and Disclosure Law.
For Kitchen Solvers franchisees in Minnesota, the franchisor cannot require litigation to occur outside of Minnesota, mandate a jury trial waiver, or enforce liquidated damages, termination penalties, or judgment notes, as per Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400J. Additionally, no part of the franchise documents can reduce a franchisee's rights under Minnesota Statutes, Chapter 80C, or their rights to procedures, forums, or remedies provided by law.
In North Dakota, the franchise agreement's waiver of exemplary and punitive damages does not apply to franchisees in that state and is considered deleted from the agreement. Furthermore, any general release required of the franchisee does not waive liabilities under the North Dakota Franchise Investment Law. These stipulations ensure that Kitchen Solvers franchisees retain their legal rights and protections under specific state laws, regardless of any general waivers in the franchise agreement.
For franchisees in New York, any provision in the Franchise Agreement that is inconsistent with the New York General Business Law, Article 33, Sections 680-695 may not be enforceable. Any provision in the Franchise Agreement requiring franchisee to sign a general release of claims against franchisor does not release any claim franchisee may have under New York General Business Law, Article 33, Sections 680-695. The New York Franchise Law shall govern any claim arising under that law.