factual

What federal act governs matters relating to arbitration in the City Publications franchise agreement?

City_Publications Franchise · 2025 FDD

Answer 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.

Franchisee expressly acknowledges that Franchisee has read the terms of this binding arbitration provision and specifically affirms that this provision is entered into willingly and voluntarily and without any fraud, duress or undue influence on the part of Franchisor or any of Franchisor's agents or employees.

Source: Item 23 — RECEIPT (FDD pages 39–129)

What This Means (2025 FDD)

According to City Publications' 2025 Franchise Disclosure Document, the Federal Arbitration Act governs matters relating to arbitration within the franchise agreement. Specifically, Title 9 of the United States Code applies because the agreement is considered a written agreement evidencing a transaction involving commerce.

This means that any disputes arising from the franchise agreement, or other agreements between City Publications and the franchisee, will be subject to binding arbitration under the Federal Arbitration Act. The exception to this is any controversy or claim relating to the ownership of City Publications' Marks or unauthorized use of confidential information.

The FDD specifies that arbitration will occur in Cobb County, Georgia, following the Commercial Arbitration Rules of the American Arbitration Association. A single arbitrator, agreed upon by both parties or appointed by the District Court for the State of Georgia, will conduct the proceedings. The arbitrator's decision is final and binding. Each party is responsible for their own costs and half the cost of the arbitrator, unless the arbitrator decides otherwise. Judgment on the arbitrator's award can be entered in any court with jurisdiction.

The Franchisee acknowledges that they have read the terms of this binding arbitration provision and specifically affirms that this provision is entered into willingly and voluntarily and without any fraud, duress or undue influence on the part of Franchisor or any of Franchisor's agents or employees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.