For 1 800 Packouts, what is the deadline for beginning arbitration, subject to the terms of the Article?
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.
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.
c. This Section will not apply to issues of indemnification, and such actions under the indemnification covenant may be brought within the period provided by any limitation-of-action statute under the laws of the state in which our headquarters is then located.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, 1 800 Packouts franchisees and the company must begin arbitration by the earlier of two deadlines. The first deadline is 90 days after the end of mediation. The second deadline is the last day of the one-year limitation period identified in the relevant article.
However, there is a one-year limitation of action. Franchisees are limited to bringing any arbitration against 1 800 Packouts within one year of discovering the facts that give rise to the claim, or one year from when the facts reasonably should have been discovered. This one-year period will not be extended simply because the claiming party was unaware of the legal basis for their 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.
There are exceptions to this one-year limitation. Claims regarding alleged violations of the Marks or any intellectual property licensed to the franchisee can be brought at any time. Additionally, the one-year limitation does not apply to 1 800 Packouts's right to indemnification. If any federal or state law provides for a shorter limitation period, that shorter period will govern. Actions under the indemnification covenant may be brought within the period provided by any limitation-of-action statute under the laws of the state in which 1 800 Packouts's headquarters is located.