What is the effect of the arbitrator's decision in City Publications binding arbitration?
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 effect. The proceedings will be held by a single arbitrator agreed upon by the parties or otherwise appointed by the District Court for the State of Georgia and located in Cobb County, Georgia. The decision of the arbitrator will be final and binding upon the parties hereto. The costs of the arbitration will be at the discretion of the arbitrator provided, however, that no party is obligated to pay more than its own costs and the cost of the arbitrator. Judgment upon the award rendered by the arbitrator may be entered in any court having in persona and subject matter jurisdiction. The parties hereby submit to the in personam jurisdiction of the federal and state courts in Georgia and to service of process by registered and return receipt requested, or by any other manner provided by law.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, disputes (excluding those relating to the ownership of City Publications' marks or unauthorized use of confidential information) will be settled by binding arbitration in Cobb County, Georgia, following the Commercial Arbitration Rules of the American Arbitration Association. The arbitrator's decision is final and binding.
The costs of arbitration are determined by the arbitrator, but each party is responsible for their own costs and a share of the arbitrator's fees. The judgment upon the arbitrator's award can be entered in any court with jurisdiction. Both parties must submit to the jurisdiction of Georgia's federal and state courts.
For prospective City Publications franchisees, this means that most disputes must be resolved through arbitration rather than in court. The arbitrator's decision is final, limiting options for appeal. Franchisees should be aware of the potential costs associated with arbitration, including legal fees and a portion of the arbitrator's expenses. The requirement to arbitrate in Cobb County, Georgia, could present logistical and financial challenges for franchisees located elsewhere. Franchisees in certain states, such as Maryland and Rhode Island, may have the right to bring suit in their own state under franchise laws, regardless of the arbitration clause.