In arbitration involving All Team, will the arbitrator apply statutes of limitations?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator will apply the provisions of any applicable statute of limitations. In connection with any arbitration proceeding, ATFC and FRANCHISEE will submit or file any claim which would constitute a compulsory counterclaim (as defined by Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates. Any of these compulsory claims which are not submitted or filed in the same proceeding in which they relate will be barred. This provision will continue in full force and effect subsequent to and notwithstanding the Transfer, or the termination or expiration of the term of this Agreement. Except as provided in subsection A. above, the arbitration will be conducted on an individual, not a class-wide basis. None of the parties to the arbitration will be entitled to consolidation of the arbitration proceedings with the proceedings of any third party, nor will the arbitrator or any court be empowered to order a consolidation of proceedings with any third party.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, in any arbitration proceeding, the arbitrator will apply the provisions of any applicable statute of limitations. This means that any legal claims brought by either All Team or the franchisee will be subject to time limits imposed by law, potentially barring claims if they are not filed within the specified period.
Furthermore, the FDD specifies that both All Team and the franchisee must submit any claim which would constitute a compulsory counterclaim within the same proceeding as the claim to which it relates, as defined by Rule 13 of the Federal Rules of Civil Procedure. Failure to do so will result in those compulsory claims being barred. This requirement ensures that all related issues are addressed in a single arbitration, promoting efficiency and preventing piecemeal litigation.
This provision remains in effect even after the transfer, termination, or expiration of the franchise agreement, indicating its enduring importance in resolving disputes. Prospective franchisees should be aware of these limitations and ensure they promptly address any potential claims or counterclaims to protect their legal rights.