What is the deadline for commencing arbitration or legal proceedings for disputes related to the Caring Transitions franchise agreement?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
16.6 LIMITATION OF CLAIMS. Except for:
- (i) claims arising from the underpayment, nonpayment, or overpayment of Royalties or National Branding Fees;
- (ii) claims based upon or arising from indemnification obligations, either under this Agreement, at law, or in equity; and
- (iii) claims for injunctive relief, including, by way of example, claims for injunctive relief relating to the use of the Marks or other intellectual property, obligations upon the termination or expiration of this Agreement, obligations under Articles 9, 10 or 15 of this Agreement, or an assignment of this Agreement or any ownership interest therein;
ANY AND ALL DISPUTES, CLAIMS, OR CONTROVERSIES ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE RELATIONSHIP BETWEEN THE PARTIES SHALL BE BARRED UNLESS AN ARBITRATION OR LEGAL PROCEEDING IS COMMENCED BEFORE THE EARLIER OF: (1) THE DATE WHEN INSTITUTION OF LEGAL OR EQUITABLE PROCEEDINGS BASED ON SUCH CLAIMS WOULD BE BARRED BY APPLICABLE STATUTE OF LIMITATIONS; OR (2) ONE YEAR AFTER THE OCCURRENCE OF THE FACTS GIVING RISE TO SUCH CLAIMS.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, any disputes, claims, or controversies arising from the franchise agreement or the relationship between the parties must be addressed promptly. Specifically, an arbitration or legal proceeding must commence before the earlier of two dates. The first deadline is the date when legal or equitable proceedings would be barred by the applicable statute of limitations. The second deadline is one year after the occurrence of the facts that gave rise to the claims.
This limitation of claims has significant implications for prospective Caring Transitions franchisees. It means a franchisee cannot delay pursuing a claim indefinitely, even if the general statute of limitations would allow for a longer period. For example, if a franchisee believes Caring Transitions has breached the agreement, they must initiate arbitration or legal proceedings within one year of discovering the breach, or whenever the statute of limitations expires, whichever comes first.
This clause does list some exceptions. Claims related to underpayment, nonpayment, or overpayment of royalties or national branding fees are not subject to this one-year limitation. Similarly, claims based on indemnification obligations or those seeking injunctive relief (such as protecting trademarks or enforcing obligations after termination) are also excluded from this limitation. Franchisees should consult with legal counsel to understand the applicable statute of limitations in their jurisdiction and to ensure timely action on any potential claims, as failing to do so could result in the claim being barred.