Within what time frame must a Buildingstars franchisee commence a judicial or arbitration proceeding for claims arising out of the franchise agreement or relationship?

According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee is barred from bringing any claims arising out of or relating to the Franchise Agreement or Buildingstars's relationship with the franchisee unless a judicial or arbitration proceeding is commenced within one year. This one-year period begins from the date on which the franchisee knew or should have known of the facts giving rise to the claim.

This means that if a Buildingstars franchisee believes they have a legal claim against Buildingstars, they must take action relatively quickly. The one-year clock starts ticking as soon as the franchisee is aware (or reasonably should be aware) of the circumstances that give rise to the claim. Failing to initiate a formal legal proceeding (either in court or through arbitration) within this timeframe will result in the franchisee losing their right to pursue the claim.

This limitation on legal actions is a significant factor for prospective Buildingstars franchisees to consider. It is shorter than the statute of limitations for many types of claims, which can often be two years or more depending on the jurisdiction and the nature of the claim. Franchisees should be diligent in identifying and addressing any potential issues or disputes promptly to ensure they do not forfeit their legal rights. It is advisable to consult with an attorney experienced in franchise law if any concerns arise to understand the implications and protect their interests within this one-year timeframe.