What is the deadline for bringing arbitration against Card My Yard after mediation ends?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
6 One Year Limitation of Action
- 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, a franchisee has a limited time to initiate arbitration following unsuccessful mediation. Except for disputes involving trademarks or intellectual property, or Card My Yard's right to indemnification, both parties must start arbitration within one year of discovering the facts that led to the claim, or when those facts reasonably should have been discovered.
However, if mediation begins before this one-year period expires, the deadline to bring arbitration is extended. In this case, the franchisee has until 5:00 p.m. Mountain Time on the 90th day after mediation ends to start arbitration. If arbitration is not initiated by this deadline, the right to pursue arbitration or any other legal remedy related to the claim is forfeited.
This strict timeline underscores the importance of promptly addressing and resolving disputes. Franchisees should be aware of these deadlines and seek legal counsel to ensure they do not lose their right to arbitrate.