Does the time limitation apply to claims by Better Blend related to non-payment of royalty fees?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.4 Time Limitation. Any arbitration or other legal action arising from or related to this Agreement must be instituted within two years from the date of the conduct or event that forms the basis of the arbitration or other legal action.
The foregoing time limit does not apply to claims (i) by BBF related to non-payment of Royalty Fees and other amounts owed by Franchisee, (ii) for indemnity under Article 16, or (iii) related to unauthorized use of Confidential Information or the Marks.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the standard time limitation for legal actions does not apply to specific claims made by Better Blend. Typically, any arbitration or legal action related to the Franchise Agreement must be initiated within two years from the date of the event that led to the action. However, this time limitation has some exceptions.
Specifically, the two-year time limit does not apply to claims by Better Blend related to the non-payment of royalty fees or other amounts owed by the franchisee. It also does not apply to claims for indemnity or those related to the unauthorized use of confidential information or the Better Blend's trademarks and other marks.
This means Better Blend has the ability to pursue legal action against a franchisee for non-payment of royalties, for example, even after the standard two-year period has passed. This exception provides Better Blend with more flexibility in enforcing its financial rights under the Franchise Agreement and protecting its brand assets.