Does the My Salon Suite franchise agreement include a waiver of punitive damages?

According to the 2025 My Salon Suite Franchise Disclosure Document, both the franchisor and franchisee waive the right to claim punitive damages against each other. This waiver extends to the fullest extent permitted by law and covers any cause of action, whether based in contract, negligence, strict liability, tort, or otherwise. However, there is an exception for trademark law treble damages, which are not waived.

In practical terms, this means that if a dispute arises between a My Salon Suite franchisee and the franchisor, neither party can seek punitive or exemplary damages, which are intended to punish the wrongdoer beyond compensating for the actual loss. Instead, any recovery will typically be limited to actual damages, which aim to compensate the injured party for their direct losses. This waiver is mutual, applying equally to both the franchisor and the franchisee.

The inclusion of such a waiver is relatively common in franchise agreements. It aims to limit the potential financial exposure of both parties in the event of a dispute, encouraging resolution based on actual harm rather than the threat of large punitive awards. Prospective My Salon Suite franchisees should understand this limitation and consider its implications for potential disputes with the franchisor.