Besides non-payment or underpayment, what is the time limit for commencing a judicial proceeding for claims arising out of the Cicis agreement or relationship?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
EXCEPT FOR CLAIMS ARISING FROM YOUR NON-PAYMENT OR UNDERPAYMENT OF AMOUNTS YOU OWE US, ANY AND ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR OUR RELATIONSHIP WITH YOU WILL BE BARRED UNLESS A JUDICIAL PROCEEDING IS COMMENCED IN ACCORDANCE WITH THIS AGREEMENT WITHIN ONE (1) YEAR FROM THE DATE ON WHICH THE PARTY ASSERTING THE CLAIM KNEW OR SHOULD HAVE KNOWN OF THE FACTS GIVING RISE TO THE CLAIMS. The parties understand that such time limit might be shorter than otherwise allowed by law. You and your owners agree that your and their sole recourse for claims arising between the parties shall be against us or our successors and assigns. You and your owners agree that our and our Affiliates' members, managers, shareholders, directors, officers, employees, and agents shall not be personally liable nor named as a party in any action between us or our Affiliates and you or your owners.
WE AND YOU AGREE THAT ANY PROCEEDING WILL BE CONDUCTED ON AN INDIVIDUAL BASIS AND THAT ANY PROCEEDING BETWEEN US AND ANY OF OUR AFFILIATES, OR OUR AND THEIR RESPECTIVE SHAREHOLDERS, OFFICERS, DIRECTORS, AGENTS, AND EMPLOYEES, ON THE ONE HAND, AND YOU OR YOUR OWNERS, GUARANTORS, AFFILIATES, AND EMPLOYEES, ON THE OTHER HAND, MAY NOT BE: (I) CONDUCTED ON A CLASS-WIDE BASIS, (II) COMMENCED, CONDUCTED OR CONSOLIDATED WITH ANY OTHER PROCEEDING, (III) JOINED WITH ANY CLAIM OF AN UNAFFILIATED THIRD-PARTY, OR (IV) BROUGHT ON YOUR BEHALF BY ANY ASSOCIATION OR AGENT.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, any claims arising from the franchise agreement or the relationship with Cicis, other than those related to non-payment or underpayment, must be brought within a specific timeframe. Specifically, a franchisee has one year from the date they knew or should have known about the facts giving rise to the claim to commence a judicial proceeding.
This limitation is significant because it may be shorter than the statute of limitations that would otherwise apply under the law. Franchisees need to be aware of this contractual limitation, as failing to bring a claim within this one-year period will bar them from pursuing it. This means a Cicis franchisee needs to be proactive in identifying and addressing any potential issues or disputes with Cicis in a timely manner.
This clause emphasizes the importance of franchisees diligently monitoring their business operations and relationship with Cicis. Should any issues arise, it is crucial to seek legal advice promptly to understand their rights and the applicable deadlines for pursuing a claim. The FDD also specifies that proceedings will be conducted on an individual basis, preventing class-action lawsuits. This further underscores the need for individual franchisees to be vigilant and prepared to act independently within the defined one-year timeframe.