What is the time limitation exception for 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, there is a general time limitation of two years for initiating any arbitration or legal action related to the Franchise Agreement. This two-year limit starts from the date of the conduct or event that leads to the claim. However, there are specific exceptions to this rule.
Better Blend makes an exception to the two-year time limitation for claims related to the non-payment of royalty fees or other amounts owed by the franchisee. This means Better Blend is not subject to the two-year limitation for claims regarding non-payment of fees.
Better Blend also makes exceptions to the two-year time limitation for claims regarding indemnity and unauthorized use of confidential information or the brand's marks. Therefore, franchisees need to be aware of the standard two-year limitation, but also understand Better Blend has longer to bring certain claims.