What claims did Dauntless and Ayers make in their demand for arbitration against City Wide?

According to City Wide's 2025 Franchise Disclosure Document, Dauntless Enterprises, Inc. and Kenneth Ayers filed a demand for arbitration against City Wide alleging breach of contract and breach of the covenant of good faith and fair dealing. They sought to require City Wide to specifically perform the franchise agreement by entering into a new franchise agreement for a 10-year term. This demand for arbitration occurred around June 22, 2023.

The initial dispute arose from Dauntless's claim that they met the renewal conditions of their franchise agreement and were entitled to a 10-year renewal. City Wide disagreed, although they had agreed to a step-up renewal if certain financial and operational milestones were met. This disagreement led to the lawsuit and subsequent demand for arbitration.

The parties reached a settlement on July 7, 2023, with a definitive settlement agreement dated July 28, 2023. The agreement extended the initial term of the franchise agreement through December 31, 2026, and provided Dauntless with an option to obtain a successor term from January 1, 2027, through April 3, 2033, contingent upon meeting certain renewal conditions based on gross sales in the 2026 calendar year. Dauntless also agreed to retain at least four sales executives throughout the term of the franchise agreement, including any successor term. The arbitration and federal court case were dismissed with prejudice on August 1, 2023.