How long after an act or omission related to the Carls Jr. agreement must a legal action be brought?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Except for payments owed by one party to the other, and unless prohibited by applicable law, any legal action or proceeding (including the offer and sale of a franchise to Developer) brought or instituted with respect to any dispute arising from or related to this Agreement or with respect to any breach of the terms of this Agreement must be brought or instituted within a period of 2 years after the initial occurrence of any act or omission that is the basis of the legal action or proceeding, whenever discovered.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, any legal action or proceeding related to a dispute arising from the agreement, or any breach of the agreement's terms, must be initiated within 2 years. This 2-year period begins after the initial occurrence of the act or omission that forms the basis of the legal action, regardless of when it was discovered. This limitation does not apply to payments owed between the parties.
This provision sets a time limit for franchisees to bring legal claims against Carls Jr., which could be shorter than the statute of limitations provided by state law. Franchisees need to be aware of this limitation period and act promptly if they believe they have a claim. Missing this deadline could prevent a franchisee from pursuing legal recourse, even if they have a valid claim.
Such limitations on legal action are relatively common in franchise agreements. Prospective Carls Jr. franchisees should consult with an attorney to fully understand the implications of this clause and how it may affect their rights. They should also keep detailed records of all interactions and potential issues that could lead to a legal claim to ensure they can act within the specified timeframe.