What is Management Recruiters' sole liability and the franchisee's sole remedy for breach of the limited warranty?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor warrants that it shall perform the Services in a timely, workmanlike, and professional manner in accordance with generally recognized industry standards for similar services.
FRANCHISOR (a) MAKES NO WARRANTIES EXCEPT FOR THAT SET OUT ABOVE; AND (b) DISCLAIMS ALL OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ACCURACY OF RESULTS AND IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
Franchisor's sole and exclusive liability and Franchisee's sole and exclusive remedy for breach of the limited warranty set out in this Section shall be reperformance of the affected services.
If Franchisor cannot reperform the services in compliance with the warranty set forth above within a reasonable time (but no more than 30 days) after Franchisee's written notice of such breach, Franchisee may, at its option, terminate the Agreement by serving written notice of termination pursuant to this Section.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, Management Recruiters provides a limited warranty stating that it will perform services in a timely, workmanlike, and professional manner, following generally recognized industry standards for similar services.
However, Management Recruiters' sole liability and the franchisee's sole remedy for any breach of this limited warranty is the reperformance of the affected services. This means that if the services provided do not meet the warranty standards, Management Recruiters has the right to perform the services again to correct the issue.
If Management Recruiters cannot reperform the services in compliance with the warranty within a reasonable time, which is defined as no more than 30 days after the franchisee provides written notice of the breach, the franchisee has the option to terminate the agreement by providing written notice of termination. This clause essentially limits Management Recruiters' financial exposure for any shortcomings in their service delivery, while also providing an exit option for the franchisee if the issues are not resolved in a timely manner.