What is the exception to the one-year arbitration claim deadline for Amorino?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless, prohibited by applicable law, and except with respect to claims for payment defaults, any claim shall be made by filing a written demand for arbitration within one (1) year from the date on which Franchisor or Franchisee knew or should have known, in the exercise of reasonable diligence, of the conduct, act or other event or occurrence first giving rise to the claim; otherwise, the right to any remedy shall be deemed forever waived and lost.
Claims by Franchisor regarding payment defaults may be made at any time within the applicable legal statute of limitations.
Claims allegedly in defense against claim for payment are barred if not made within the one-year period referred to above.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, there is a one-year deadline for filing a written demand for arbitration, starting from when either Amorino or the franchisee knew or should have known about the event that led to the claim. However, there is an exception to this rule. Claims by Amorino regarding payment defaults are not subject to this one-year limitation and may be made at any time within the applicable legal statute of limitations. This means Amorino has a longer period to pursue claims related to unpaid dues or fees compared to other types of disputes.
This exception favors Amorino, as it allows them more time to address payment issues, which are critical to their revenue stream. Franchisees, on the other hand, must be diligent in identifying and pursuing any other claims against Amorino within the one-year timeframe. Failure to do so results in a waiver of their right to any remedy. This creates an imbalance where franchisees need to be proactive and quick in addressing grievances, while Amorino has more leeway when it comes to payment-related issues.
It is also important to note that any claims made as a defense against a claim for payment are also subject to the one-year deadline. This means that if a franchisee is being pursued for payment and has a counterclaim, they must bring that counterclaim within one year of the event giving rise to it, or they will be barred from using it as a defense. This further emphasizes the importance of franchisees acting promptly to protect their rights.
Prospective franchisees should be aware of this clause and understand the implications of the differing deadlines. They should ensure they have systems in place to identify and address any potential claims against Amorino promptly to avoid waiving their rights. Additionally, they should consult with legal counsel to fully understand their rights and obligations under the franchise agreement.