Does the City Wide franchise agreement allow franchisees to waive their right to a jury trial?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.5 Rights of a Secured Party.
Upon the occurrence of any event of default enumerated in Section 14.1 or 14.2 above, in addition to any other rights and remedies to which it may be entitled, CITY WIDE will have all rights and remedies of a secured party under the UCC as enacted in the State of Kansas, including but not limited to, the right to enter any premises of Franchisee to remove and repossess any products and goods in which CITY WIDE has been granted a security interest, without notice to Franchisee.
Franchisee waives and releases CITY WIDE from all claims in connection with or arising from such entering and removal.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
Based on the 2025 City Wide Franchise Disclosure Document, the franchise agreement includes a clause where the franchisee waives and releases City Wide from all claims related to City Wide entering and removing products and goods in which City Wide has been granted a security interest. This waiver is specifically tied to City Wide's rights as a secured party under the Uniform Commercial Code (UCC) in Kansas following an event of default. This means that if City Wide has a security interest in the franchisee's assets and needs to repossess them due to a default, the franchisee agrees not to sue City Wide for any damages or claims arising from that repossession.
This waiver is limited to claims connected to City Wide's repossession of secured assets after a default. It does not explicitly state that the franchisee waives the right to a jury trial for all disputes under the franchise agreement. However, the franchisee does agree to release City Wide from claims related to the repossession of secured assets.
It is important for a prospective City Wide franchisee to understand the implications of this waiver. While it may seem narrow, repossession of assets can be a significant event in a business's life. Franchisees should seek legal counsel to fully understand their rights and obligations under the franchise agreement, particularly regarding dispute resolution and waivers of rights. Franchisees should also inquire with City Wide about the types of claims that are subject to this waiver and whether there are any other provisions in the franchise agreement that could affect their right to a jury trial in other types of disputes.