Are claims for indemnification subject to the one-year limitation in the Creative World School agreement?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Limitations of Claims. Section 20.06 is amended so that any and all claims arising out of this agreement or the relationship among you and us must be made by written notice to the other party within 3 years from the occurrence of the facts giving rise to such claim (regardless of when it becomes known).
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
Based on the 2025 Creative World School Franchise Disclosure Document, the standard one-year limitation for claims is amended to a three-year limitation. Specifically, any claims arising from the franchise agreement or the relationship between the franchisee and Creative World School must be made within three years of the occurrence of the facts that give rise to the claim. This applies regardless of when the franchisee becomes aware of these facts.
This extended timeframe provides Creative World School franchisees with additional security, allowing more time to discover and address potential issues. This is particularly relevant in franchise relationships where certain problems may not surface immediately. The modification is outlined in Item 23 of the FDD, which addresses receipts and includes amendments to specific sections of the franchise agreement.
However, prospective franchisees should note that this three-year limitation may be superseded by state-specific laws. For example, the Maryland Rider to the Franchise Agreement states that claims arising under the Maryland Franchise Registration and Disclosure Law must also be brought within three years after the grant of the franchise. Therefore, franchisees need to be aware of both the general claim limitations and any state-specific regulations that may apply to their franchise agreement.