What are the acceptable locations for arbitration between City Publications and a franchisee?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement requires litigation to be conducted in a court located in the State of Georgia.
This provision might not be enforceable for any cause of action arising under California law.
- Section 24G of the Franchise Agreement requires binding arbitration.
The arbitration will occur at the forum indicated in Section 24B with the costs being borne by the prevailing party.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
Sections 24B and 24G of the Franchise Agreement require litigation or arbitration to be conducted in the State of Georgia; the requirement shall not limit any rights Franchisee may have under the Maryland Franchise Registration and Disclosure Law to bring suit in the State of Maryland.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the acceptable locations for arbitration depend on the franchisee's location. Generally, the franchise agreement mandates that arbitration occur in the State of Georgia. However, this may not be enforceable under California law for franchisees in California.
For franchisees in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
For franchisees in Maryland, the franchise agreement requires arbitration to be conducted in the State of Georgia, but this requirement shall not limit any rights a franchisee may have under the Maryland Franchise Registration and Disclosure Law to bring suit in the State of Maryland. This means that while City Publications' standard agreement specifies Georgia, franchisees in certain states may have legal grounds to pursue arbitration or litigation in their home state, potentially reducing travel costs and ensuring the process is governed by local laws.