What must Chicken Guy and the Developer agree to regarding the limitation on the period of time in which claims must be brought?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Chicken Guy and Developer agree to be bound by the provisions of any limitation on the period of time in which claims must be brought under applicable law.
Chicken Guy and Developer further agree that, in connection with any such arbitration proceeding, each must submit or file any claim which would constitute a compulsory counterclaim (as defined by Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates.
Any such claim which is not submitted or filed as described above will be forever barred.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy and the Developer must adhere to any legal limitations regarding the time frame within which claims can be filed under applicable law. This means that both parties are bound by statutes of limitations or other legal requirements that set deadlines for bringing legal actions.
This agreement ensures that neither party can pursue claims indefinitely and that disputes are addressed within a reasonable and legally defined period. It is a standard legal provision designed to promote timely resolution of conflicts and prevent the accumulation of stale claims.
For a prospective Chicken Guy franchisee (Developer), this means understanding and complying with all applicable statutes of limitations. Failure to bring a claim within the legally prescribed time could result in the claim being permanently barred. Franchisees should consult with legal counsel to understand these limitations and ensure they are aware of their rights and obligations.
Furthermore, Chicken Guy and the Developer also agree that any claim that would constitute a compulsory counterclaim must be submitted or filed within the same proceeding as the original claim to which it relates, or it will be permanently barred. This encourages efficient resolution of all related issues in a single legal action.