Can a City Publications franchisee in Michigan agree to arbitration or litigation outside of Michigan?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
◼ A provision requiring that arbitration or litigation be conducted outside this state.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, if any part of the franchise agreement requires that arbitration or litigation be conducted outside of Michigan, that provision is void and cannot be enforced against the franchisee. This protection is specifically outlined in the Michigan addendum to the franchise agreement.
This means that a City Publications franchisee in Michigan cannot be forced to participate in arbitration or litigation in another state. This is a significant protection for franchisees, as it ensures that any legal disputes will be resolved within the state of Michigan, potentially reducing travel costs and making it easier to secure local legal representation.
This provision is designed to protect franchisees from unfair or overly burdensome legal requirements imposed by the franchisor. It ensures that Michigan franchisees have access to the legal protections afforded by Michigan law and that they are not disadvantaged by having to litigate or arbitrate disputes in a distant or unfamiliar jurisdiction. Prospective franchisees in Michigan should be aware of this protection and understand that they cannot be compelled to resolve disputes outside of the state.