factual

In Michigan, can a City Publications franchisee enter into an agreement to conduct arbitration or litigation outside the state at the time of arbitration or litigation?

City_Publications Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU.
    • ◼ 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 state of Michigan prohibits certain unfair provisions that are sometimes included in franchise documents. Specifically, a provision requiring that arbitration or litigation be conducted outside of Michigan is void and cannot be enforced against the franchisee.

This means that if the standard City Publications franchise agreement contains a clause that mandates arbitration or litigation to occur in a state other than Michigan (such as Georgia, as indicated in the California addendum), that provision is unenforceable for franchisees operating in Michigan. Michigan franchisees have the right to pursue arbitration or litigation within their own state, regardless of what the standard franchise agreement stipulates.

This protection ensures that City Publications franchisees in Michigan are not subjected to potentially burdensome or unfair legal proceedings in distant locations. It allows them to resolve disputes within a familiar legal environment and reduces the potential costs and logistical challenges associated with out-of-state arbitration or litigation.

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.