For Amorino, what is the required action to initiate a claim subject to arbitration?
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, to initiate a claim subject to arbitration, a franchisee must file a written demand for arbitration within one year from the date they knew or should have known about the event giving rise to the claim. This requirement does not apply to claims for payment defaults, which can be made at any time within the applicable legal statute of limitations. Claims made in defense against a claim for payment are also subject to the one-year limitation.
This means that franchisees need to be diligent in identifying and pursuing any potential claims against Amorino within the specified timeframe. Failure to do so could result in the franchisee waiving their right to seek a remedy. The one-year limitation period is a critical aspect of the arbitration agreement, as it sets a firm deadline for franchisees to take action.
The arbitration process is governed by the Federal Arbitration Act and the Commercial Arbitration Rules of the AAA. The arbitration will be held at the office of the AAA in New York County, New York. Any disputes regarding the arbitrability of a claim will also be determined through arbitration. This clause ensures that all aspects of the dispute, including whether it is subject to arbitration, are resolved through the arbitration process.
This requirement to file a written demand for arbitration within a year is a fairly standard practice in franchising. It is designed to ensure timely resolution of disputes and prevent claims from being brought after an extended period, which could prejudice the other party. Prospective franchisees should carefully consider this provision and understand the importance of acting promptly if they believe they have a claim against Amorino.