For Jersey Mikes, what is the deadline for commencing a judicial or arbitration proceeding for claims arising out of the agreement or the franchisor's relationship with the developer, excluding claims related to the developer's non-payment or underpayment?

According to Jersey Mikes' 2025 Franchise Disclosure Document, a developer has a limited time to bring claims against the franchisor. Except for claims arising from the developer's non-payment or underpayment, any and all claims arising out of or relating to the agreement or Jersey Mikes' relationship with the developer will be barred unless a judicial or arbitration proceeding is commenced within one year. This one-year period starts from the date on which the party asserting the claim knew or should have known of the facts giving rise to the claims.

This means that if a Jersey Mikes developer believes they have a claim against the franchisor, they must act quickly to investigate and initiate legal proceedings. Failing to do so within one year of discovering the issue could result in the claim being permanently barred. This limitation applies to both judicial and arbitration proceedings, providing a consistent deadline regardless of the chosen dispute resolution method.

This type of limitation on claims is relatively common in franchise agreements, as it provides both parties with a degree of certainty and encourages prompt resolution of disputes. Franchisees should be aware of these limitations and consult with an attorney if they believe they have a claim against the franchisor to ensure they do not miss the deadline for initiating legal action. The exclusion of non-payment claims suggests Jersey Mikes prioritizes collecting outstanding debts, allowing more time to pursue these specific financial obligations.