What are the two requirements a City Publications franchisee must meet to be reimbursed for trademark dispute expenses?

Based on the 2025 City Publications Franchise Disclosure Document, if either the franchisor or franchisee is required to enforce the franchise agreement through a judicial or arbitration proceeding, the prevailing party is entitled to reimbursement of costs. These costs include reasonable accounting and legal fees associated with the proceeding.

This means that if a City Publications franchisee wins a legal dispute against the franchisor or another party regarding the franchise agreement, they can recover their legal and accounting fees. Conversely, if City Publications wins a legal dispute against a franchisee, the franchisee would be responsible for covering City Publications's legal and accounting costs.

It is important to note that reimbursement is only applicable to the prevailing party in a judicial or arbitration proceeding. This encourages both City Publications and its franchisees to resolve disputes amicably and avoid unnecessary legal battles. Franchisees should factor in potential legal costs and the risk of covering the franchisor's expenses if they lose a dispute when evaluating the franchise opportunity.