What is the limitation on claims arising from under-reporting of gross revenues for Beef O Bradys?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.6 **Limitations of Claims.
ANY AND ALL CLAIMS ARISING OUT OF THIS AGREEMENT OR THE RELATIONSHIP AMONG YOU AND US MUST BE MADE BY WRITTEN NOTICE TO THE OTHER PARTY WITHIN 1 YEAR FROM THE OCCURRENCE OF THE FACTS GIVING RISE TO SUCH CLAIM (REGARDLESS OF WHEN IT BECOMES KNOWN); EXCEPT FOR CLAIMS ARISING FROM: (A) UNDER-REPORTING OF GROSS REVENUES; (B) UNDER-PAYMENT OF AMOUNTS OWED TO US OR OUR AFFILIATES; (C) CLAIMS FOR INDEMNIFICATION; AND/OR (D) UNAUTHORIZED USE OF THE MARKS.
HOWEVER, THIS PROVISION DOES NOT LIMIT THE RIGHT TO TERMINATE THIS AGREEMENT IN ANY WAY.**
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, there is a specific clause addressing the limitation of claims. Generally, any claims arising from the franchise agreement or the relationship between the franchisee and Beef O Bradys must be made within one year of the occurrence of the facts that led to the claim, regardless of when those facts become known.
However, this one-year limitation does not apply to certain types of claims. Specifically, claims arising from the under-reporting of gross revenues, under-payment of amounts owed to Beef O Bradys or its affiliates, claims for indemnification, and/or unauthorized use of the Beef O Bradys's trademarks are exempt from this one-year limitation.
This means that Beef O Bradys retains the right to pursue these specific claims even after one year has passed from the date of the incident. This provision does not limit Beef O Bradys's right to terminate the franchise agreement.