factual

Where must arbitration or litigation occur related to the City Wide franchise?

City_Wide Franchise · 2025 FDD

Answer 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, disputes must be arbitrated or litigated in Johnson County, Kansas, subject to applicable state law. This means that if a franchisee has a disagreement with City Wide that cannot be resolved informally, the legal proceedings will take place in a specific location. This is a common practice in franchising, as it provides a predetermined venue for dispute resolution.

For a prospective City Wide franchisee, this is an important consideration. It means that any legal action against City Wide, or vice versa, will need to be pursued in Johnson County, Kansas, regardless of where the franchisee's business is located. This could involve travel expenses, hiring local counsel, and dealing with the specific rules and procedures of the Kansas legal system.

It is also important to note that this requirement is subject to applicable state law, which means that certain state laws may override or modify this provision. Franchisees should consult with an attorney to understand how this provision applies to their specific situation and the laws of their state. Understanding the location and governing law for dispute resolution is a crucial part of evaluating the legal and financial implications of investing in a City Wide franchise.

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.