For Card My Yard arbitrations, what is the deadline for beginning arbitration after mediation ends?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Except for an alleged violation of the Marks or any intellectual property licensed to you (which may be brought at any time), and except for the enforcement of our right to indemnification under Article 14 and subsection (c) just below, 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 WERE DISCOVERED, OR ONE YEAR FROM THE DATE THAT SUCH FACTS REASONABLY SHOULD HAVE BEEN DISCOVERED. 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, and the Parties will have no other opportunity to try, arbitrate or receive any other relief because of the action, matter, dispute, or disagreement underlying the claim.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, if mediation does not resolve a dispute, arbitration must begin within a specific timeframe. Arbitration must start by the earlier of 90 days after the end of mediation or the last day of the one-year limitation period for bringing claims. This one-year limitation begins when the facts giving rise to the claim were discovered or reasonably should have been discovered.
However, if mediation begins on the last day of this one-year period, the deadline to bring arbitration is extended by 90 days from the unsuccessful end of mediation. If arbitration is not initiated by 5:00 p.m. Mountain Time on that 90th day, the right to bring arbitration expires.
This means a Card My Yard franchisee needs to be aware of these deadlines to protect their rights. It's crucial to track when the facts of a potential claim are discovered and to adhere to the mediation and arbitration timelines to avoid losing the ability to pursue a claim.