What are the limitations on the period of time by which claims must be brought under the Angry Chickz franchise agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
17.3 Time for Bringing Claims. Any and all claims and actions arising out of or relating to this Agreement, the relationship of Company and Franchisee, or Franchisee's operation
of the Franchised Business, 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 Franchisee'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 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, there are specific time limitations for bringing claims related to the franchise agreement. Any claims or actions arising from the agreement, the relationship between Angry Chickz and the franchisee, or the franchisee's operation of the franchised business must be initiated before the earliest of three deadlines.
First, the claim must be brought within the time period allowed by any applicable state or federal statute of limitations. Second, a claim must be brought within one year from the date the party discovered, or should have discovered, the facts that led to the claim. Third, claims must be brought within two years after the first act or omission that gave rise to the alleged claim. If a claim isn't brought within the earliest of these time frames, it is considered irrevocably barred.
However, there are exceptions to these limitations. Claims by Angry Chickz related to a franchisee's underreporting of sales, as well as claims by either party for failure to pay monies owed or for indemnification, are only subject to the applicable state or federal statute of limitations, and not the one-year or two-year limits. This means that Angry Chickz has a longer period to bring claims related to underreported sales or unpaid debts than for other types of disputes.