Are there any restrictions on statute of limitations periods for claims under the Washington Franchise Investment Protection Act for a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Section 23.4 Limitations of Claims
YOU MUST BRING ALL CLAIMS ARISING OUT OF (WHETHER SOUNDING IN CONTRACT TORT, OR OTHERWISE) OR RELATING TO THIS AGREEMENT OR THE RELATIONSHIP BETWEEN US, OUR AFFILIATE, OFFICERS, DIRECTORS, AGENTS, OR EMPLOYEES AND YOU WITHIN TWO (2) YEARS FROM THE DATE ON WHICH THE VIOLATION, ACT, OR CONDUCT GIVING RISE TO THE CLAIM OCCURS, REGARDLESS OF WHEN YOU KNEW OR SHOULD HAVE KNOWN OF THE FACTS GIVING RISE TO THE CLAIM, OR YOUR CLAIM WILL BE BARRED UNLESS AN ARBITRATION OR JUDICIAL PROCEEDING, AS PERMITTED, IS COMMENCED IN THE APPROPRIATE FORUM WITHIN THIS TWO-YEAR PERIOD. THIS
PROVISION IS INTENDED TO SHORTEN ANY APPLICABLE STATUTE OF LIMITATIONS TO THE EXTENT PERMITTED BY LAW.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, provisions that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act may not be enforceable. This means that while the franchise agreement might contain language attempting to shorten the time a franchisee has to bring a claim under this Act, such provisions could be deemed invalid by a court.
This protection is significant for prospective Boulder Designs franchisees in Washington because it ensures they have a fair opportunity to pursue legal claims related to violations of the Franchise Investment Protection Act. The Act is designed to protect franchisees from unfair practices, and this provision prevents Boulder Designs from unduly limiting a franchisee's ability to seek legal recourse.
However, the FDD also states in Section 23.4 that franchisees must bring all claims within two years from the date the violation occurred, regardless of when they knew or should have known about it, or the claim will be barred. This provision is intended to shorten any applicable statute of limitations to the extent permitted by law. Therefore, there is conflicting information about the statute of limitations for claims arising under the Washington Franchise Investment Protection Act.
Prospective franchisees should seek legal counsel to fully understand their rights and obligations under both the franchise agreement and the Washington Franchise Investment Protection Act. It is important to clarify the enforceability of any clauses that may limit the statute of limitations for claims arising under the Act, given the explicit statement that such limitations may not be enforceable.