What is the statute of limitations for claims or actions related to the Brain Balance franchise agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
21.10. Notwithstanding any applicable Statute of Limitations to the contrary, the parties agree that any and all claims and actions arising out of or relating to this Agreement, the relationship between FRANCHISEE and COMPANY or FRANCHISEE's operation of the Franchised Business shall be commenced within one (1) year from the occurrence of the facts giving rise to such claim or action, provided, however, that this Section 21.10 shall not apply to COMPANY's rights under Sections 7.02 or 7.03 of this Agreement, which may be exercised at any time or to claims arising out of inspections or audits pursuant to Sections 7.02 or 7.03.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the standard statute of limitations may not apply to claims or actions related to the franchise agreement. Instead, any claims or actions arising from the agreement, the relationship between the franchisee and Brain Balance, or the franchisee's operation of the franchised business must be commenced within one year from when the facts giving rise to the claim or action occurred. This means a franchisee has a limited time to bring any legal action against Brain Balance.
However, there are exceptions to this one-year limitation. The clause does not apply to Brain Balance's rights under Sections 7.02 or 7.03 of the agreement, which can be exercised at any time. It also does not apply to claims arising from inspections or audits conducted under those same sections. This allows Brain Balance more flexibility in addressing certain issues, such as those discovered during audits or inspections, without being constrained by the one-year limitation.
This shortened statute of limitations is something a prospective Brain Balance franchisee should carefully consider. It is shorter than the statutory period provided by law. Franchisees need to be diligent in identifying and addressing any potential claims within this one-year timeframe. It is advisable to consult with a legal professional to fully understand the implications of this provision and to ensure timely action is taken if any issues arise.