Are there any exceptions to the one-year arbitration limitation for Card My Yard franchisees?
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, there are specific exceptions to the one-year limitation for bringing arbitration against the franchisor. Generally, franchisees and Card My Yard must initiate arbitration within one year of discovering the facts that give rise to the claim, or when those facts reasonably should have been discovered. This limitation does not apply to alleged violations of the Marks or any intellectual property licensed to the franchisee, which can be brought at any time. Additionally, the enforcement of Card My Yard's right to indemnification is also exempt from the one-year limitation.
If mediation begins on the last day of the one-year period, the deadline to bring arbitration is extended by 90 days following the unsuccessful end of mediation. Failure to initiate arbitration by 5:00 p.m. Mountain Time on that 90th day results in the expiration of the right to bring arbitration. However, if any federal or state law provides for a shorter limitation period than one year, that shorter period will take precedence.
Actions related to indemnification are not subject to the one-year limitation. These actions 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. This means a Card My Yard franchisee needs to be aware of these exceptions and the specific timeframes involved to protect their legal rights.