Where must any action to enforce the Accounting Services Agreement with City Wide be brought?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement will be governed by and construed in accordance with the laws of the State of Kansas.
Any action brought to enforce this Agreement, or any right granted in this Agreement will be brought in accordance with the dispute resolution provisions contained in the most current form of the Franchise Agreement between the Parties.
Should either party institute or participate in a legal or equitable proceeding against the other seeking to enforce or interpret this Agreement, the non-prevailing party in the proceeding will pay the prevailing party's costs (whether by final judgment or out of court settlement), expert and professional fees, and attorney's fees, including reimbursement of in-house counsel expenses at a reasonable rate comparable to fees generally charged in the legal community for outside counsel, and all costs and fees on appeal.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, any action to enforce the Accounting Services Agreement, or any right granted within it, must be brought in accordance with the dispute resolution provisions outlined in the most current form of the Franchise Agreement between the parties. This means that franchisees must refer to their current Franchise Agreement with City Wide to understand the specific process and location for resolving disputes related to the Accounting Services Agreement.
This clause emphasizes the importance of reviewing the Franchise Agreement in conjunction with the Accounting Services Agreement to fully understand the legal obligations and dispute resolution processes. It ensures that any legal actions related to the Accounting Services Agreement are handled according to the established procedures in the Franchise Agreement.
Kansas law governs the Accounting Services Agreement. Additionally, the non-prevailing party in any legal proceeding related to the agreement will be responsible for covering the prevailing party's costs, including attorney's fees and expert witness fees. This provision could significantly increase the financial risk for a franchisee who decides to pursue legal action against City Wide and does not win the case.