Where will arbitration occur for City Publications franchisees, as indicated in ITEM 17?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
◼ 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.
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.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, 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. For franchisees in Maryland, 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. For franchisees in Washington, 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.
This means that, unless superseded by state law, arbitration for City Publications franchisees will generally take place at the location specified in Section 24B of the franchise agreement, with the winning party in the arbitration covering the costs. However, franchisees in Maryland have the right to bring a suit in Maryland under the Maryland Franchise Registration and Disclosure Law, regardless of the agreement to arbitrate in Georgia. Franchisees in Washington can have the arbitration or mediation site in Washington, or in a place mutually agreed upon, or as determined by the arbitrator or mediator.
Prospective franchisees should carefully review Sections 24B and 24G of the City Publications franchise agreement to fully understand the arbitration process, location, and cost implications. They should also be aware of any state-specific laws that may modify these terms, as highlighted in the addenda for Maryland and Washington. It is advisable to seek legal counsel to fully understand their rights and obligations regarding arbitration, especially considering the potential for variations based on their location.