What is the time limit for commencing a judicial or arbitration proceeding for claims against Cream, excluding non-payment claims?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
UNLESS PROHIBITED BY APPLICABLE LAW, 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, THE DEVELOPMENT RIGHTS, OR OUR RELATIONSHIP WITH YOU WILL BE BARRED UNLESS A JUDICIAL OR ARBITRATION PROCEEDING IS COMMENCED IN ACCORDANCE WITH THIS AGREEMENT WITHIN ONE 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.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees have a limited time to bring claims against the company. Except for claims related to non-payment or underpayment of amounts owed to Cream, any and all claims arising out of or relating to the Franchise Agreement, the franchisee's shop, or the relationship between the franchisee and Cream must be commenced within one year. This one-year period starts from the date on which the party asserting the claim knew or should have known about the facts giving rise to the claim.
This limitation means that franchisees must act quickly if they believe they have a claim against Cream. It is shorter than what might otherwise be allowed by law, so franchisees need to be diligent in identifying and pursuing any potential issues. Failure to commence a judicial or arbitration proceeding within this one-year timeframe will bar the claim.
This provision does not apply to claims arising from the franchisee's non-payment or underpayment of amounts owed to Cream, which may be subject to different statutes of limitations. Franchisees should consult with an attorney to understand their rights and obligations under the Franchise Agreement and applicable law.