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What laws and principles might limit Anago's obligations under the Franchise Agreement?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

SECTION 18.23 LIMITATIONS OF CLAIMS.

ALL CLAIMS, EXCEPT FOR MONIES DUE TO US UNDER THIS AGREEMENT, RELATING TO THE RELATIONSHIP BETWEEN THE PARTIES ARE BARRED UNLESS AN ACTION OR LEGAL OR ARBITRATION PROCEEDING IS FILED AND TIMELY SERVED UPON THE OPPOSING PARTY WITHIN 12 MONTHS FROM THE DATE YOU OR WE KNEW OR SHOULD HAVE KNOWN OF THE FACTS CREATING THE CLAIM, EXCEPT TO THE EXTENT ANY APPLICABLE LAW OR STATUTE PROVIDES FOR A SHORTER PERIOD OF TIME TO BRING A CLAIM, OR AS OTHERWISE REQUIRED BY LAW.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, Section 18.23, titled "Limitations of Claims," specifies that all claims, except for monies due to Anago under the agreement, are barred unless an action or legal or arbitration proceeding is filed and timely served upon the opposing party within 12 months from the date you or Anago knew or should have known of the facts creating the claim. This limitation is subject to any applicable law or statute that provides for a shorter period to bring a claim, or as otherwise required by law.

This means that an Anago franchisee has a limited time frame to bring any claims against the franchisor, with the exception of payments owed to Anago. This limitation is set at 12 months from when the franchisee knew or should have known about the facts leading to the claim. However, this 12-month period may be shortened if any applicable law or statute mandates a shorter period for filing such claims.

This clause is significant for prospective franchisees as it sets a relatively short window for identifying and pursuing claims against Anago. Franchisees need to be diligent in monitoring their business relationship and operations to ensure they do not miss the deadline for filing any potential claims. The inclusion of the phrase "except to the extent any applicable law or statute provides for a shorter period of time to bring a claim, or as otherwise required by law" means franchisees must also be aware of any state or federal laws that might further reduce the time they have to take action.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.