What is the time limit for Crown Gold Exchange to bring a claim related to non-payment?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.4 Time Limitation. Any arbitration or other legal action arising from or related to this Agreement must be instituted within two years from the date such party discovers the conduct or event that forms the basis of the arbitration or other legal action. The foregoing time limit does not apply to claims (i) by one party related to non-payment under this Agreement by the other party, (ii) for indemnity under Article 16, or (iii) related to unauthorized use of Confidential Information or the Marks.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the standard two-year time limitation for instituting arbitration or other legal action does not apply to claims related to non-payment under the Franchise Agreement. This means Crown Gold Exchange is not restricted by a two-year limit to bring a claim against a franchisee for non-payment.
This exception benefits Crown Gold Exchange, as it allows them more flexibility in pursuing legal action for non-payment. Franchisees should be aware that Crown Gold Exchange can pursue non-payment claims even after the standard two-year period for other disputes has expired.
It is important for prospective franchisees to understand the implications of this open-ended time frame for non-payment claims. Franchisees should maintain accurate records of all payments made to Crown Gold Exchange and seek legal advice if they have any concerns about potential non-payment claims.