Are there any exceptions to the damage waiver for Kitchen Solvers franchisees?
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 exceptions to damage waivers for franchisees in certain states.
Specifically, for Kitchen Solvers franchisees in California, provisions requiring a waiver of exemplary and punitive damages are not enforceable due to California Corporations Code section 31521. Additionally, general releases required for renewal, sale, or transfer do not apply to liability under the Maryland Franchise Registration and Disclosure Law for franchisees in Maryland.
For Kitchen Solvers franchisees in North Dakota, the franchise agreement's waiver of exemplary and punitive damages will not apply and is considered deleted from the agreement and disclosure documents. Furthermore, any general release required of the franchisee will not act as a waiver of any liability Kitchen Solvers may have incurred under the North Dakota Franchise Investment Law.
In New York, any provision in the Kitchen Solvers Franchise Agreement that is inconsistent with the New York General Business Law, Article 33, Sections 680-695 may not be enforceable. Any provision requiring a general release of claims against Kitchen Solvers does not release any claim the franchisee may have under these sections of New York law.