factual

In Michigan, does the City Publications franchise agreement require arbitration or litigation to be conducted outside of Michigan?

City_Publications Franchise · 2025 FDD

Answer 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 City Publications' 2025 Franchise Disclosure Document, the franchise agreement cannot require arbitration or litigation to be conducted outside of Michigan. The FDD states that Michigan prohibits certain unfair provisions that are sometimes in franchise documents. If any of the listed provisions are in the City Publications franchise documents, the provisions are void and cannot be enforced against the franchisee. One of the listed provisions is a requirement that arbitration or litigation be conducted outside of Michigan.

This means that if a City Publications franchise agreement contains a clause requiring arbitration or litigation to occur outside of Michigan, that clause is unenforceable under Michigan law. A franchisee in Michigan would have the right to insist on arbitration or litigation taking place within the state, regardless of what the standard franchise agreement says.

This protection ensures that City Publications franchisees are not unduly burdened by having to travel to another state to resolve disputes, which could significantly increase their legal costs and inconvenience. It aligns with the state's effort to protect franchisees from potentially unfair or overreaching terms in franchise agreements.

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.