factual

How many days does a party have to resolve a dispute with City Wide before it is submitted for binding arbitration?

City_Wide Franchise · 2025 FDD

Answer 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, a franchisee or City Wide has fifteen calendar days to resolve a dispute after written notification before it is submitted for binding arbitration. This arbitration covers controversies, disputes, or claims related to the franchise agreement, the relationship between the parties, the validity of the agreement, or any operating procedures. However, disputes relating to the Marks or any lease or sublease or real estate are excluded from this arbitration clause.

This means that if a franchisee has a disagreement with City Wide, they must first attempt to resolve it informally within this 15-day period. If the issue remains unresolved, either party can then initiate binding arbitration to settle the matter. The arbitration will follow the Commercial Rules of the American Arbitration Association and will take place in Lenexa, Kansas, or another location designated by City Wide in the Kansas City, Missouri Metropolitan area.

The arbitrator's decision is binding, and judgment upon the award can be entered in a court of competent jurisdiction. The arbitrator has broad authority to grant relief, including damages, injunctive relief, and can also assess the costs of arbitration, including attorney's fees, against either party. This clause highlights the importance of attempting to resolve disputes quickly and efficiently, but also ensures that both parties have recourse to a formal arbitration process if necessary.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.