For City Publications franchises in Maryland, does the requirement for litigation or arbitration in Georgia limit a franchisee's right to bring suit in Maryland under the Maryland Franchise Registration and Disclosure Law?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
◼ Sections 24B and 24G of the Franchise Agreement require litigation or arbitration to be conducted in the State of Georgia; the requirement shall not limit any rights Franchisee may have under the Maryland Franchise Registration and Disclosure Law to bring suit in the State of Maryland.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the requirement for litigation or arbitration to be conducted in Georgia does not limit a franchisee's right to bring suit in Maryland under the Maryland Franchise Registration and Disclosure Law. This is specifically addressed in an amendment to the franchise agreement for the state of Maryland.
Specifically, Section 24B and 24G of the City Publications Franchise Agreement initially mandate that litigation or arbitration must occur in Georgia. However, the Maryland addendum clarifies that this requirement does not override a franchisee's rights under the Maryland Franchise Registration and Disclosure Law to pursue legal action in Maryland.
This means that a City Publications franchisee in Maryland retains the right to bring a lawsuit in Maryland if the claim arises under the Maryland Franchise Registration and Disclosure Law, despite the standard agreement's stipulation for Georgia-based litigation or arbitration. This amendment ensures that City Publications complies with Maryland franchise law and protects the legal rights of its franchisees within the state.