What is the standard limitation period for bringing an arbitration claim against Card My Yard?
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.
- b. Notwithstanding the foregoing, if any federal or state law provides for a shorter limitation period than is described in this Section, then such a shorter period will govern.
- c. This Section will not apply to issues of indemnification, and such actions under the indemnification covenant may be brought within the period provided by any limitation-of-action statute under the laws of the state in which our headquarters is then located.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees and Card My Yard are generally limited to bringing any arbitration against each other within one year. This one-year period starts from the date the facts giving rise to the claim were discovered, or when they reasonably should have been discovered. The document clarifies that ignorance of legal theories or laws does not delay the start of this period.
There are a couple of exceptions to this one-year limitation. First, claims regarding violations of Card My Yard's trademarks or intellectual property can be brought at any time. Second, the one-year limitation does not apply to Card My Yard's right to indemnification, which is covered under Article 14. Actions related to indemnification can be brought within the period provided by the limitation-of-action statute under the laws of the state where Card My Yard's headquarters is located.
If mediation begins before the one-year period expires, 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 the 90th day after mediation ends, the right to bring arbitration expires. Additionally, if any federal or state law provides for a shorter limitation period than one year, that shorter period will take precedence.
This clause is significant for prospective Card My Yard franchisees as it sets a relatively short timeframe for resolving disputes through arbitration. Franchisees need to be diligent in identifying and addressing any potential claims within this one-year window, or potentially lose their right to arbitrate. The exceptions for intellectual property and indemnification claims provide some flexibility, but the general one-year limit remains a critical consideration.