What happens if arbitration is not brought by the deadline after mediation ends with Card My Yard?
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 arbitration is not initiated by the specified deadline after mediation, the right to bring arbitration expires. Specifically, arbitration must be brought by 5:00 p.m. Mountain Time on the 90th day after mediation ends.
If this deadline is missed, both parties forfeit the opportunity to pursue arbitration or any other form of relief related to the underlying claim. This means that Card My Yard franchisees and the franchisor lose the ability to try, arbitrate, or receive any resolution for the dispute.
This provision underscores the importance of adhering to the outlined timelines for dispute resolution. Franchisees should be aware of these time constraints and take appropriate action to protect their rights. It is also important to note that this limitation does not apply to alleged violations of the Marks or any intellectual property licensed to the franchisee, or to the enforcement of Card My Yard's right to indemnification.