Does the two-year limitation for commencing arbitration or judicial proceedings against 7 Brew apply even if the party asserting the claim was unaware of the facts giving rise to the claim?

According to 7 Brew's 2025 Franchise Disclosure Document, the franchise agreement includes a specific limitation on when claims can be brought against the company. Except for claims arising from non-payment of royalties, brand fund contributions, tech fees, and amounts owed for an operating store, and the right of 7 Brew to seek indemnification from franchisees for third-party claims, all other claims arising from the franchise agreement or the relationship between 7 Brew and the franchisee will be barred if an arbitration or judicial proceeding is not commenced within two years.

This two-year period begins from the date the violation, act, or conduct giving rise to the claim occurs. This limitation applies regardless of when the party asserting the claim knew or should have known about the facts that led to the claim. This means a franchisee could lose the right to pursue a claim against 7 Brew if they do not take action within two years of the event, even if they were unaware of the issue during that time.

This type of limitation of claims clause is not uncommon in franchise agreements. Prospective franchisees should be aware of this provision and understand that they need to be diligent in identifying and pursuing any potential claims against 7 Brew within the specified timeframe. It is advisable to consult with an attorney to fully understand the implications of this clause and to ensure timely action is taken if a claim arises.