How is Marble Slab Creamery's total liability calculated in relation to payments made by the customer?

According to Marble Slab Creamery's 2025 Franchise Disclosure Document, the brand's total liability is limited to the amount the customer has paid for services in the six months leading up to a claim. Specifically, Marble Slab Creamery's total liability for all claims, regardless of the legal basis (contract, tort, etc.) or where the claim is filed, will not exceed the total amount the customer paid to Marble Slab Creamery for services during the six months prior to the claim's date.

This limitation of liability has significant implications for franchisees. It means that even if a franchisee suffers substantial damages due to Marble Slab Creamery's actions or omissions, the franchisee's potential recovery is capped at the amount they paid for services over the preceding six months. This could be a fraction of the actual damages incurred, especially if the damages are long-term or involve significant financial losses.

This type of limitation of liability clause is relatively common in franchise agreements. It is designed to protect the franchisor from potentially large and unpredictable claims. However, franchisees should carefully consider the implications of such a clause and assess whether the potential benefits of the franchise opportunity outweigh the risks associated with this limitation. Franchisees may want to consult with an attorney to fully understand their rights and obligations under the franchise agreement and to negotiate for more favorable terms if possible.