Where will arbitration take place for disputes involving City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 27.1 All controversies, disputes or claims arising between Franchisee and CITY WIDE in connection with, arising from, or with respect to: (1) any provision of this Agreement or in any other agreement related to this Agreement between the parties; (2) the relationship of the parties; (3) the validity of this Agreement or any other agreement related to this Agreement between the parties, or any provisions of those agreements; or (4) any specification, standard or operating procedure relating to the establishment or operation of the Franchised Business (except controversies, disputes or claims relating to the Marks or any lease or sublease or real estate) which is not resolved within fifteen (15) calendar days after either party notifies the other in writing of such controversy, dispute or claim, will be submitted for binding arbitration in accordance with the Commercial Rules ("Rules") of the American Arbitration Association or its successor. Arbitration will take place at an appointed time and place in Lenexa, Kansas, or such other location designated by CITY WIDE in the Kansas City, Missouri Metropolitan area.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, any disputes that arise between a franchisee and City Wide that cannot be resolved within 15 calendar days will be submitted for binding arbitration. This arbitration will follow the Commercial Rules of the American Arbitration Association. The location for this arbitration will be in Lenexa, Kansas, or another location designated by City Wide within the Kansas City, Missouri Metropolitan area.
This means that if a City Wide franchisee has a disagreement with the company related to the franchise agreement, the relationship of the parties, or the standards of operating the franchised business, they may be required to participate in binding arbitration. The arbitration location is not fixed, as City Wide has the ability to designate an alternative location within the Kansas City metro area. This could potentially require a franchisee to travel to the Kansas City area to resolve disputes.
The arbitrator's award is binding and can be enforced in a court of law. The arbitrator has broad authority to grant relief, including damages and injunctive relief. The arbitrator can also decide whether to award the costs of the arbitration, including attorney's fees, to either party.
It is important for prospective City Wide franchisees to understand this arbitration clause, as it dictates the process and location for resolving potential disputes with the franchisor. Franchisees should consider the potential costs and inconvenience of arbitrating in the Kansas City area when evaluating the franchise opportunity.