Does the City Publications FDD specify a choice of forum for disputes?

According to the 2025 City Publications Franchise Disclosure Document, the franchise agreement requires litigation to be conducted in a court located in the State of Georgia. However, this provision might not be enforceable for any cause of action arising under California law. Additionally, Section 24G of the Franchise Agreement requires binding arbitration, which will occur at the forum indicated in Section 24B, with the costs being borne by the prevailing party.

For prospective franchisees in California, it's important to note that certain aspects of the franchise agreement, such as the requirement for litigation to occur in Georgia and the application of Georgia laws, may not be enforceable under California law. The FDD advises consulting legal counsel to determine the applicability of California and federal laws, including Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act, to any provisions of the Franchise Agreement restricting venue to a forum in the State of Georgia.

This means that while the City Publications franchise agreement specifies Georgia as the forum for litigation, franchisees, particularly those in California, may have legal grounds to dispute this clause and potentially pursue legal action in their home state. The FDD highlights the importance of seeking legal counsel to understand the implications of these clauses and how they may be interpreted in different jurisdictions. Franchisees should be aware of their rights and the potential costs associated with legal disputes, as the prevailing party will bear the costs of arbitration.