What statute must the Limitations of Claims section comply with in the Bor Restoration FDD?

According to Bor Restoration's 2024 Franchise Disclosure Document, the Limitations of Claims section must comply with any Applicable Law that provides for a shorter limitation period. This means that if a state or federal law specifies a shorter time frame for bringing a claim than what is outlined in the franchise agreement, the shorter statutory period will take precedence.

For a prospective Bor Restoration franchisee, this is important because it means the one-year limitation of action described in Section 16.8 of the franchise agreement may not always be enforceable. Franchisees need to be aware of the specific statutes of limitations in their state or jurisdiction, as these could be shorter than the one-year period stipulated in the agreement. This could impact their ability to bring a claim against Bor Restoration if they wait too long, even if it is within the one-year window specified in the agreement.

However, the FDD also states that this section does not apply to issues of indemnification described in Article 14. Actions under the indemnification covenant may be brought within the period provided by any limitation-of-action statute under the laws of the state in which Bor Restoration's headquarters is then located. Therefore, franchisees should consult with a legal professional to understand their rights and obligations regarding the statute of limitations in their specific circumstances, especially concerning indemnification claims.