What are the limitations periods that Franchisor and Franchisee are bound to in any Bang Cookies arbitration proceeding?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
In connection with binding arbitration, Franchisor and Franchisee further agree that:
- (e) They shall each be bound to the limitations periods set forth in Article 18.I. of this Agreement and that, in any arbitration proceeding, Franchisor and Franchisee must each timely submit, within the same arbitration proceeding, any claim that would constitute a compulsory counterclaim as such claims are defined and set forth under Rule 13 of the United States Federal Rules of Civil Procedure. Any claim that is not submitted or filed as required shall be forever barred;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, both the franchisor and franchisee are bound to the limitations periods set forth in Article 18.I of the Franchise Agreement. This means that any claims that either party wishes to bring against the other in arbitration must be filed within the time frame specified in that article.
Additionally, both parties must submit any claim that would constitute a compulsory counterclaim, as defined under Rule 13 of the United States Federal Rules of Civil Procedure, within the same arbitration proceeding. Failure to submit a compulsory counterclaim at the required time will result in the claim being permanently barred.
This requirement ensures that all related disputes between Bang Cookies and its franchisees are resolved in a single arbitration proceeding, promoting efficiency and preventing piecemeal litigation. Franchisees should carefully review Article 18.I of the Franchise Agreement to understand the specific limitations periods applicable to different types of claims and consult with legal counsel to ensure timely filing of any potential claims or counterclaims.