Does the City Publications Franchisee affirm that the binding arbitration provision is entered into willingly and voluntarily?

According to City Publications' 2025 Franchise Disclosure Document, the franchisee expressly acknowledges that they have read the terms of the binding arbitration provision. Furthermore, the franchisee specifically affirms that entering into this provision is done willingly, voluntarily, and without any fraud, duress, or undue influence from City Publications or its agents or employees. This acknowledgement is part of Section 24G of the Franchise Agreement, which mandates binding arbitration for disputes, excluding those related to the ownership of City Publications' marks or unauthorized use of confidential information. The arbitration will occur in Cobb County, Georgia, following the Commercial Arbitration Rules of the American Arbitration Association.

This provision means that prospective City Publications franchisees should carefully review and understand the arbitration terms before signing the agreement. By affirming their understanding and voluntary agreement, franchisees waive their right to resolve disputes through traditional court litigation, agreeing instead to a binding arbitration process. This process dictates that disputes will be settled by a single arbitrator in Cobb County, Georgia, whose decision will be final and binding.

While the franchisee agrees to the arbitration provision, it's important to note that the FDD also includes addenda for certain states like California, Maryland, and Washington, which may modify or supersede certain provisions of the Franchise Agreement to comply with local franchise laws. For example, the California addendum notes that the requirement to conduct litigation in Georgia might not be enforceable under California law. Similarly, the Maryland addendum specifies that the requirement for litigation or arbitration in Georgia does not limit a franchisee's rights under Maryland law to bring suit in Maryland.

Therefore, prospective franchisees should be aware of the specific addenda applicable to their state and consult with legal counsel to fully understand their rights and obligations under the Franchise Agreement, including the binding arbitration provision. This is particularly important given that the costs of arbitration are at the discretion of the arbitrator, and franchisees are responsible for their own costs and potentially a portion of the arbitrator's fees.