Are Angry Chickz Company and Developer bound by any limitations on the period of time by which claims must be brought?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
11.3 Time for Bringing Claims. Any and all claims and actions arising out of or relating to this Agreement, the relationship of Company and Developer, or Developer's operation of the Restaurants, must be brought or asserted before the expiration of the earlier of (a) the time period for bringing an action under any applicable state or federal statute of limitations; (b) one (1) year after the date upon which a party discovered, or should have discovered, the facts giving rise to an alleged claim; or (c) two (2) years after the first act or omission giving rise to an alleged claim. If such as claim or action is not brought or asserted before the expiration of the earliest time period set forth in the foregoing sentence, it is expressly acknowledged and agreed by all parties that such claim(s) or action(s) shall be irrevocably barred; provided, however, that claims of Company attributable to Developer's underreporting of sales, and claims of the parties for failure to pay monies owed and/or indemnification shall be subject to only the applicable state or federal statute of limitations.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz FDD, the time for bringing claims is limited. Any claims or actions arising from the agreement, the relationship between Angry Chickz and the developer, or the developer's operation of restaurants must be brought before the earliest of three deadlines. These deadlines are (a) the time period under any applicable state or federal statute of limitations, (b) one year after the date a party discovered or should have discovered the facts giving rise to the claim, or (c) two years after the first act or omission giving rise to the claim.
If a claim or action is not brought before the earliest of these time periods, it is irrevocably barred. However, there is an exception: claims by Angry Chickz related to the developer's underreporting of sales, and claims by either party for failure to pay monies owed or for indemnification, are subject only to the applicable state or federal statute of limitations.
For prospective Angry Chickz developers, this means that most claims have a strict time limit for being brought, potentially as short as one year from discovery or two years from the initial act. It is crucial to be aware of these deadlines and to promptly address any issues that could lead to a claim. The exception for underreporting of sales and failure to pay monies owed provides some additional protection under the standard statute of limitations for those specific types of claims. Franchisees should consult with a legal professional to fully understand their rights and obligations under the agreement and applicable laws.