Where will binding arbitration for City Publications disputes be conducted?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement is a written agreement evidencing a transaction involving commerce and is, therefore, subject to the terms and provisions of the Federal Arbitration Act, Title 9 of the United States Code. Except for a controversy or claim relating to the ownership of any of Franchisor's Marks or unauthorized use or disclosure of Franchisor's Confidential Information, all disputes arising out of or relating to this Agreement, or to any other agreements between the parties or with regard to interpretation, formation or breach of this or any other agreement between the parties, shall be settled by binding arbitration conducted in Cobb County, Georgia, in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in eff
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, except for disputes relating to the ownership of City Publications' marks or unauthorized use of confidential information, all disputes will be settled by binding arbitration conducted in Cobb County, Georgia. This arbitration will follow the Commercial Arbitration Rules of the American Arbitration Association.
This means that if a franchisee has a dispute with City Publications (excluding those specific intellectual property matters), they must resolve it through binding arbitration in Cobb County, Georgia, rather than through a lawsuit in a traditional court. The rules of the American Arbitration Association will govern the process.
It is important to note that the FDD includes addenda for certain states like California, Maryland, and Washington, which may modify the arbitration clause. For example, the California addendum notes that the requirement to conduct litigation in Georgia might not be enforceable under California law. The Washington addendum specifies that for franchises purchased in Washington, the arbitration or mediation site will be in Washington or a mutually agreed-upon location. Prospective franchisees should carefully review any state-specific addenda to understand how they might affect the arbitration process.
For a prospective franchisee, this means they may need to travel to Cobb County, Georgia, to resolve disputes, which could increase costs. However, this may not apply if the franchisee is in a state that has an addendum modifying this clause. Franchisees should consult with legal counsel to understand the implications of the arbitration clause and any applicable state laws.