In 1 800 Packouts arbitration, is there a deadline to submit a compulsory counterclaim?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
- c. Each participant must submit or file any claim which would constitute a "compulsory counter-claim" (as defined by the applicable rule under the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates. Any such compulsory counter-claim that is not submitted or filed in such proceeding will be forever barred.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, if arbitration is required to resolve a dispute, any claim that qualifies as a "compulsory counterclaim" must be submitted within the same proceeding as the original claim.
Specifically, the FDD states that the deadline for submitting a compulsory counterclaim is determined by the applicable rule under the Federal Rules of Civil Procedure. A compulsory counterclaim is a claim that a party is legally required to raise in response to another party's claim if it arises out of the same transaction or occurrence.
For a prospective 1 800 Packouts franchisee, this means that if you have a claim against 1 800 Packouts that is related to the dispute they initiated against you, you must raise it during the arbitration proceeding. Failing to do so will result in the claim being permanently barred. This requirement ensures that all related issues are resolved in a single proceeding, promoting efficiency and preventing future litigation on the same subject matter.