Does the Mr. Sandless franchise agreement include a waiver of punitive damages?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You waive to, the fullest extent permitted by law, any right to or claim for any punitive, exemplary, incidental, indirect, special or consequential damages (including, without limitation, lost profits) which you may have against us arising out of any cause whatsoever (whether such cause be based in contract, negligence, strict liability, other tort or otherwise) and agree that in the event of a dispute, your recovery shall be limited to actual damages. If any other term of this Agreement is found or determined to be unconscionable or unenforceable for any reason, the foregoing provisions shall continue in full force and effect, including, without limitation, the waiver of any right to claim any consequential damages.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the franchise agreement includes a waiver of punitive damages. As stated in Item 22, the franchisee waives any right to claim punitive, exemplary, incidental, indirect, special, or consequential damages against Mr. Sandless. This waiver extends to any cause of action, whether based on contract, negligence, strict liability, or other tort.
This means that if a franchisee has a dispute with Mr. Sandless, their potential recovery is limited to actual damages. They cannot seek additional damages intended to punish Mr. Sandless for their actions. This limitation is significant because it caps the financial compensation a franchisee can receive in a dispute, even if Mr. Sandless is found to be at fault.
The agreement also specifies that even if any other term of the agreement is found to be unconscionable or unenforceable, the waiver of consequential damages remains in full effect. This reinforces the franchisor's intention to limit their liability to actual damages only. Franchisees should carefully consider this waiver and its potential impact on their rights before entering into the franchise agreement.