What claims are exempt from the two-year time limitation for Bombs Away legal actions?
Bombs_Away 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 such party discovers 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 one party related to non-payment under this Agreement by the other party, (ii) for indemnity under Article 16, or (iii) related to unauthorized use of Confidential Information or the Marks.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, there are specific claims that are exempt from the standard two-year time limitation for legal actions. Generally, any arbitration or legal action related to the Franchise Agreement must be initiated within two years of discovering the event that triggers the action. However, this limitation does not apply to certain types of claims.
Specifically, the two-year time limit does not apply to claims related to non-payment under the Franchise Agreement. This means that Bombs Away or the franchisee can pursue legal action for unpaid fees or other financial obligations even after the two-year period has passed. Additionally, claims for indemnity, as outlined in Article 16 of the agreement, are also exempt. Indemnity typically involves one party compensating the other for losses or damages, and these claims can be pursued outside the standard two-year window.
Finally, the time limitation does not apply to claims related to the unauthorized use of Confidential Information or the Marks (trademarks). This is a crucial protection for Bombs Away, as unauthorized use of proprietary information or trademarks can cause ongoing damage. By exempting these claims from the two-year limit, Bombs Away ensures it can take action to protect its brand and confidential assets, even if the unauthorized use is discovered more than two years after it began. This is a fairly standard practice in franchising, as intellectual property protection is paramount for franchisors.