To what jurisdiction do the parties submit in the event of arbitration for City Publications?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
tate of Georgia. This provision might not be enforceable for any cause of action arising under California law.
- The Franchise Agreement requires application of the laws of the State of Georgia. This provision might not be enforceable under California law.
- Section 19E of the Franchise Agreement contains a liquidated damages clause. Under California Civil Code Section 1671, certain liquidated damages clauses are unenforceable.
- Section 24G of the Franchise Agreement requires binding arbitration. The arbitration will occur at the forum indicated in Section 24B with the costs being borne by the prevailing party. Prospective franchisees are encouraged to consult legal counsel to determine the applicability of California and federal laws (such as 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.
- The Department of Financial Protection and Innovation requires that the franchisor defer the collection of all initial fees from California franchisees until the franchisor has completed all its pre-opening obligations and franchisee is open for business.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the location for arbitration depends on the franchisee's location and the specific agreement. Generally, the franchise agreement requires binding arbitration, and the arbitration will occur at the forum indicated in Section 24B of the franchise agreement, with costs borne by the prevailing party. For franchisees in Washington, in any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
For franchisees in Maryland, Section 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.
For franchisees in California, the Franchise Agreement requires litigation to be conducted in a court located in the State of Georgia, but this provision might not be enforceable for any cause of action arising under California law, and prospective franchisees are encouraged to consult legal counsel to determine the applicability of California and federal laws to any provisions of the Franchise Agreement restricting venue to a forum in the State of Georgia. Franchisees should consult with legal counsel to understand their rights and obligations regarding arbitration locations, as these may vary based on state laws and specific circumstances.