Does a Monicals Pizza developer waive the right to incidental or consequential damages in claims against the franchisor regarding the Development Agreement?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer and Franchisor each waive, to the fullest extent permitted by law, any right or claim for any punitive or exemplary damages against the other, and agree that if there is a dispute with the other, each shall be limited to the recovery of actual damages sustained by it, including costs, interest and reasonable accounting and legal fees as provided in Section 0. Developer waives and disclaims any right to incidental or consequential damages in any action or claim against Franchisor concerning this Development Agreement or any related agreement. In any claim or action brought by Developer against Franchisor concerning this Development Agreement, Developer's contract damages shall not exceed and shall be limited to refund of Developer's Development Fee payments.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, a developer waives the right to claim incidental or consequential damages in any action or claim against Monicals Pizza concerning the Development Agreement or any related agreement.
This means that if a Monicals Pizza developer sues the franchisor, they can only recover direct, actual damages they've sustained. They cannot claim damages for indirect losses like lost profits or opportunities that resulted from the franchisor's actions.
Furthermore, the FDD states that in any claim or action brought by a developer against Monicals Pizza concerning the Development Agreement, the developer's contract damages are limited to a refund of the Development Fee payments. This provision further restricts the potential financial recovery for a developer in case of a dispute with Monicals Pizza related to the Development Agreement.