What date did the parties settle all claims in the lawsuit between Dauntless and City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties settled all claims on July 7, 2023. Under a definitive settlement agreement dated July 28, 2023, the parties extended the initial term of the franchise agreement through December 31, 2026 (the "2026 Calendar Year") and provided Dauntless with the option to obtain a successor term from January 1, 2027, through April 3, 2033, if Dauntless satisfies certain renewal conditions. The renewal conditions vary depending on the amount of Gross Sales that Dauntless will achieve in the 2026 Calendar Year. Pursuant to the settlement agreement, Dauntless also agreed to retain at least four sales executives throughout the term of the franchise agreement, including any successor term. On August 1, 2023, the arbitration and federal court case were both dismissed with prejudice.
Source: Item 3 — LITIGATION (FDD page 14)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide settled all claims with Dauntless Enterprises, Inc. and Kenneth Ayers on July 7, 2023. However, the definitive settlement agreement was dated later, on July 28, 2023.
Under the settlement, City Wide extended the initial term of the franchise agreement through December 31, 2026, and gave Dauntless the option to obtain a successor term from January 1, 2027, through April 3, 2033, if Dauntless meets 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.
Following the settlement, the arbitration and federal court case were dismissed with prejudice on August 1, 2023. This resolution provides clarity for both City Wide and the franchisee, Dauntless, allowing them to move forward under the terms of the settlement agreement.