Who determines the costs of arbitration for City Publications disputes?
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.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, the costs of arbitration are borne by the prevailing party. This means that the party who wins the arbitration case will have their arbitration costs covered by the losing party.
For a prospective City Publications franchisee, this implies that if a dispute arises and goes to arbitration, the franchisee could be responsible for covering City Publications' arbitration costs if the franchisee loses the case. Conversely, if the franchisee wins, City Publications would be responsible for covering the franchisee's arbitration costs.
It is important to note that this arrangement can significantly impact the financial risk associated with a City Publications franchise. Franchisees should carefully consider the potential costs of arbitration and the likelihood of prevailing in a dispute before entering into a franchise agreement. Consulting with legal counsel is advisable to fully understand the implications of this clause.