What controversies, disputes or claims relating to City Wide are excluded from the arbitration agreement?
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, the arbitration agreement does not apply to controversies, disputes, or claims relating to the Marks or any lease or sublease or real estate. All other controversies, disputes, or claims arising between the franchisee and City Wide in connection with, arising from, or with respect to the franchise agreement are subject to arbitration.
Specifically, the agreement covers disputes related to any provision of the agreement, any other agreement related to the franchise agreement, the relationship between the parties, the validity of the agreements, or any specification, standard, or operating procedure relating to the establishment or operation of the franchised business. These disputes will be submitted for binding arbitration if they are not resolved within 15 calendar days after written notification.
This means that if a City Wide franchisee has a dispute regarding trademarks, real estate, or lease agreements, they are not required to go through arbitration and can pursue other legal avenues. However, disputes related to the franchise agreement itself, the operating procedures, or the relationship with City Wide must first go through arbitration before any other legal actions can be taken.