What is the time limit for bringing a legal claim against Bor Restoration?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
a. Except for matters identified in Section 16.6 above (including an alleged violation of the Marks or any intellectual property licensed to you (which may be brought at any time), YOU AND WE ARE LIMITED TO BRINGING ANY ARBITRATION AGAINST THE OTHER WITHIN ONE YEAR OF THE DATE THAT THE FACTS WHICH GIVE RISE TO THE CLAIM OCCURRED. The one-year period begins to run and will not be tolled merely because the claiming Party was unaware of legal theories, statutes, regulations, or case law upon which the claim might be based. If the Parties have begun mediation on the day that the one-year expires, then the one-year will be extended by 90 days from the unsuccessful end of mediation, within which a Party must bring arbitration. If arbitration is not brought by 5:00 p.m. Mountain Time on the 90th day after mediation ends, then the right to bring arbitration expires,
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, franchisees have a limited time to bring arbitration against Bor Restoration. Specifically, any arbitration must be initiated within one year of the date when the facts giving rise to the claim occurred. This limitation applies to both the franchisee and Bor Restoration, establishing a mutual deadline for initiating legal action. This one-year period starts running regardless of whether the party is aware of the specific legal theories, statutes, regulations, or case law that support their claim.
There is an exception to this one-year limitation if the parties have begun mediation before the one-year period expires. In such cases, the deadline to bring arbitration is extended by 90 days from the unsuccessful end of the mediation. However, if arbitration is not initiated by 5:00 p.m. Mountain Time on the 90th day after mediation ends, the right to bring arbitration expires.
Notably, the one-year limitation does not apply to matters involving alleged violations of Bor Restoration's trademarks or intellectual property. Claims related to these violations can be brought at any time, without being subject to the one-year restriction. This distinction highlights the importance Bor Restoration places on protecting its brand and proprietary assets.
For prospective franchisees, this limitation of action clause underscores the importance of promptly addressing any concerns or disputes that may arise during the franchise relationship. Franchisees should be diligent in documenting any issues and seeking legal advice in a timely manner to ensure their rights are protected within the specified timeframe. Franchisees should also be aware of the mediation extension and the specific deadline following mediation to preserve their right to arbitrate.