According to the City Wide Franchise Agreement, what disputes must be arbitrated?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| transferee acceptable to CITY WIDE, subject to compliance with the transfer restrictions above; provided, however, that the Survivor will, throughout such period, fulfill all duties of Franchisee under this Agreement. The 6 months will be extended by up to 60 days to account for CITY WIDE's right of first refusal under described above. Failure to so dispose of the interest within such time will constitute a material breach of the Franchise Agreement. | ||
| q. Non-competition covenants during the term of the franchise | Section 12; Attachment F | You cannot be involved in a competing business. |
| r. Non-competition covenants after the franchise is terminated or expires | Section 12; Attachment F | You cannot be involved in a competing business in your Designated Territory for 2 years after the Franchise Agreement terminates or expires, within the Standard Metropolitan Statistical Area (SMSA) where the Franchised Business Location is located, or within 150 miles of any other CITY WIDE location, whether franchised or operated by CITY WIDE or one of its franchisees or affiliates. |
| S. Modification of the agreement | Section 22 | The Franchise Agreement cannot be modified unless both parties have signed the modifications in writing, but Operating Manual may be changed by CITY WIDE. However, if, at any time during the Term, 60% or more of the franchisees then operating within the CITY WIDE System provide their written consent to a written request by CITY WIDE to modify a provision in the Franchise Agreement, you are deemed to have provided your assent to such a modification to the Franchise Agreement. |
| t. Integration/merger clause | Section 30.7 | Only the terms of the Franchise Agreement are binding (subject to state law). Other terms in other documents may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | Section 27 | Except for certain matters, you must arbitrate all disputes in Johnson County, Kansas. |
| v. | Section 27 | Must arbitrate or litigate in Johnson County, |
| Choice of forum | Kansas (subject to applicable state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–47)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, Item 17 details dispute resolution. Specifically, all disputes, except for certain matters, must be arbitrated. The arbitration proceedings must occur in Johnson County, Kansas. This requirement is detailed in Section 27 of the Franchise Agreement.
For a prospective franchisee, this means that if a dispute arises with City Wide, resolving it through arbitration in Johnson County, Kansas, is mandatory unless the dispute falls under the exceptions not specified in this excerpt. Arbitration generally involves a more streamlined and less formal process compared to litigation, potentially saving time and legal costs. However, it also means giving up the right to a traditional court trial.
Franchisees should be aware of the implications of agreeing to arbitrate disputes, including the location of the arbitration and the governing laws, as these factors can influence the outcome and cost of resolving any conflicts with City Wide. It is important to seek legal counsel to understand the specific types of disputes that are subject to arbitration and the potential advantages and disadvantages of this method of dispute resolution.