For 1 800 Packouts, what is the deadline to begin arbitration after mediation ends?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Subject to the terms of this Article, Arbitration must begin by the earlier of 90 days after the end of mediation or the last day of the one year identified in this Article.
17.6 One Year Limitation of Action
- a. Except for an alleged violation of the Marks or any intellectual property licensed to you (which may be brought at any time), and except for the enforcement of our right to indemnification under Article 14 and subsection (c) just below, YOU AND WE ARE LIMITED TO BRINGING ANY ARBITRATION AGAINST THE OTHER WITHIN ONE YEAR OF THE DATE THAT THE FACTS WHICH GIVE RISE TO THE CLAIM WERE DISCOVERED, OR ONE YEAR FROM THE DATE THAT SUCH FACTS REASONABLY SHOULD HAVE BEEN DISCOVERED. The one-year period begins to run and will not be tolled merely because the claiming party was unaware of legal theories, statutes, regulations, or case law upon which the claim might be based. If the Parties have begun mediation on the day that the one-year expires, then the one-year will be extended by 90 days from the unsuccessful end of mediation within which a Party must bring arbitration. If arbitration is not brought by 5:00 p.m. Mountain Time on the 90th day after mediation ends, then the right to bring arbitration expires, and the Parties will have no other opportunity to try, arbitrate or receive any other relief because of the action, matter, dispute, or disagreement underlying the claim.
- b. Notwithstanding the foregoing, if any federal or state law provides for a shorter limitation period than is described in this Section, then such a shorter period will govern.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the deadline to begin arbitration is generally 90 days after the end of mediation. However, there is also a one-year limitation of action. This means that arbitration must begin by the earlier of 90 days after mediation ends or within one year of discovering the facts that give rise to the claim. If mediation begins before the one-year period expires, the deadline to bring arbitration is extended by 90 days from the unsuccessful end of mediation. If arbitration is not brought by 5:00 p.m. Mountain Time on the 90th day after mediation ends, the right to bring arbitration expires.
For a prospective 1 800 Packouts franchisee, this means that it is important to act quickly if a dispute arises. Franchisees should be aware of the deadlines for mediation and arbitration, and they should consult with an attorney if they believe they have a claim against 1 800 Packouts. Missing these deadlines could result in the loss of the right to pursue a claim.
It's important to note that there are exceptions to this rule. Claims related to violations of Marks or intellectual property can be brought at any time. Also, if any federal or state law provides for a shorter limitation period, that shorter period will govern. Franchisees should carefully review the franchise agreement and consult with an attorney to determine the applicable deadlines for any potential claims.