What specific performance was Dauntless seeking from City Wide in arbitration?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
On or around June 22, 2023, Dauntless and Ayers filed a demand for arbitration alleging breach of contract and breach of the covenant of good faith and fair dealing, seeking to require CITY WIDE to specifically perform the franchise agreement by entering into a new franchise agreement for a 10-year term.
Source: Item 3 — LITIGATION (FDD page 14)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, Dauntless Enterprises, Inc. sought specific performance from City Wide in arbitration. Specifically, Dauntless wanted the arbitrator to require City Wide to enter into a new franchise agreement with them for a 10-year term. This request stemmed from a disagreement over whether Dauntless had met the conditions necessary to renew their franchise agreement. City Wide did not believe Dauntless had satisfied all renewal conditions.
The dispute led Dauntless to file a demand for arbitration, alleging breach of contract and breach of the covenant of good faith and fair dealing. In addition to seeking the 10-year franchise agreement, Dauntless initially sought a preliminary injunction to prevent City Wide from refusing to renew the franchise agreement and from terminating it upon its expiration on June 19, 2023.
The parties eventually settled all claims on July 7, 2023, and formalized the agreement on July 28, 2023. The settlement 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 achieved in the 2026 calendar year. Dauntless also agreed to maintain at least four sales executives throughout the term of the agreement, including any successor term. The arbitration and federal court case were dismissed with prejudice on August 1, 2023.