Regarding time limitations for claims, are Cinnaholic franchisor and franchisee bound by the provisions of any limitation on the period of time in which claims must be brought under applicable law or the Cinnaholic Agreement, whichever expires earlier?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchisor and Franchisee agree to be bound by the provisions of any limitation on the period of time in which claims must be brought under applicable law or this Agreement, whichever expires earlier.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic and its franchisees agree to abide by the statute of limitations outlined in both applicable laws and the franchise agreement. The agreement specifies that the shorter of the two limitation periods will be the one enforced.
This means a Cinnaholic franchisee needs to be aware of the specific timeframes for filing claims, as defined by both state and federal laws, as well as the Cinnaholic franchise agreement itself. It is crucial to understand which claims might be subject to shorter limitation periods under the agreement compared to the general legal statutes.
For example, if a state law allows four years to file a breach of contract claim, but the Cinnaholic franchise agreement stipulates a two-year limit for such claims, the franchisee must adhere to the two-year limit. This could significantly impact a franchisee's ability to pursue legal action if they delay.