What statute of limitations applies to claims under the Bombs Away franchise agreement?
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.
ILLINOIS RIDER TO FRANCHISE AGREEMENT
- Limitation of Claims. No action can be maintained to enforce any liability created by the Illinois Act unless brought before the expiration of 3 years from the act or transaction constituting the violation upon which it is based, the expiration of 1 year after Franchisee become notice disclosing the violation, whichever shall first expire.
- The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
MARYLAND RIDER TO FRANCHISE AGREEMENT
- which provides for a period of Statute of Limitations. Any provision of the Agreement limitations for causes of action shall not apply to causes of action under the Maryland Franchise an action under such law within three years after the grant of the franchise. Law, Business Regulation Article, §14-227, Annotated Code of Maryland. Franchisee must bring
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, the standard time limitation for initiating arbitration or other legal action related to the franchise agreement is two years from the date the party discovers the conduct or event that forms the basis of the action. However, this two-year limitation does not apply to claims related to non-payment, indemnity, or unauthorized use of confidential information or the Bombs Away marks.
For franchisees in Illinois, no action can be maintained to enforce any liability created by the Illinois Act unless brought before the expiration of 3 years from the act or transaction constituting the violation upon which it is based. Alternatively, the claim must be brought before the expiration of 1 year after the franchisee becomes aware of facts or circumstances reasonably indicating that the franchisee may have a claim for relief regarding conduct governed by the Illinois Act, or 90 days after delivery to the franchisee of a written notice disclosing the violation, whichever expires first.
For franchisees in Minnesota, the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
For franchisees in Maryland, any provision of the Agreement that provides for a period of limitations for causes of action does not apply to causes of action under the Maryland Franchise Law. Franchisees in Maryland must bring an action under such law within three years after the grant of the franchise.