From which event does the one-year limitation period begin for a Spray Net franchisee's cause of action?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee further agrees that no cause of action arising out of or under this Agreement may be maintained by Franchisee against Franchisor unless brought before the expiration of one (1) year after the act, transaction or occurrence upon which such action is based or the expiration of one year after the Franchisee becomes aware of facts or circumstances reasonably indicating that Franchisee may have a claim against Franchisor hereunder, whichever occurs sooner, and that any action not brought within this period shall be barred as a claim, counterclaim, defense, or set-off.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a franchisee has a limited time to bring a cause of action against the franchisor. Specifically, the franchisee must bring any cause of action arising out of or under the Franchise Agreement within one year.
The one-year limitation period starts after either of two events, whichever occurs sooner: (1) the act, transaction, or occurrence upon which the action is based, or (2) the expiration of one year after the franchisee becomes aware of facts or circumstances reasonably indicating that the franchisee may have a claim against Spray Net. If an action is not brought within this period, it is barred as a claim, counterclaim, defense, or set-off.
This limitation of actions clause means a Spray Net franchisee needs to be vigilant in identifying potential issues and pursuing claims promptly. The shorter of the two timelines will apply, so a franchisee cannot wait indefinitely even if they are unaware of a problem. This clause could significantly impact a franchisee's ability to seek legal recourse if they delay in discovering or acting upon a potential claim.