Are there any exceptions to the one-year limitation on claims in the Beef O Bradys agreement?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.6 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 the 2025 Beef O Bradys Franchise Disclosure Document, there are exceptions to the one-year limitation on claims. Generally, any claims arising out of 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 give rise to the claim. This claim must be made via written notice to the other party, regardless of when the issue becomes known.
However, there are specific exceptions to this one-year limitation. The exceptions include 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 marks. These types of claims are not subject to the one-year limitation, meaning Beef O Bradys can pursue these claims even if they arise more than one year after the relevant facts occurred.
This provision does not limit Beef O Bradys' right to terminate the franchise agreement. This means that even if a claim is subject to the one-year limitation, Beef O Bradys still retains the right to terminate the agreement based on other breaches or violations, regardless of the claim's timeliness. Prospective franchisees should be aware of these limitations and exceptions, as they can significantly impact their ability to bring claims against the franchisor and vice versa.