When does the one-year period for commencing a judicial proceeding begin for an All Team franchisee?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
WITH RESPECT TO ANY AND ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ATFC'S RELATIONSHIP WITH FRANCHISEE, FRANCHISEE WILL BE BARRED UNLESS A JUDICIAL PROCEEDING IS COMMENCED WITHIN ONE (1) YEAR FROM THE DATE ON WHICH FRANCHISEE KNEW OR SHOULD HAVE KNOWN OF THE FACTS GIVING RISE TO THAT CLAIM.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee must commence any judicial proceeding related to the franchise agreement or All Team's relationship with the franchisee within one year. This one-year period begins from the date on which the franchisee knew or should have known about the facts that led to the claim.
This limitation on legal actions means that franchisees need to be vigilant in identifying and addressing any issues or disputes that may arise. It is crucial to keep detailed records and seek legal advice promptly if a potential claim arises. Failing to act within this one-year window could result in the franchisee losing their right to pursue legal action, regardless of the merits of their claim.
Such limitations on legal action are relatively common in franchise agreements. Prospective All Team franchisees should understand this provision and its implications, ensuring they are prepared to act quickly if they believe they have a claim against the franchisor. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and to ensure they comply with all applicable deadlines.