Under what state's laws will the City Wide Franchise Agreement be interpreted and construed?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Applicable Law and Attorney's Fees.
This Agreement will be governed by and construed in accordance with the laws of the State of Kansas.
Any action brought to enforce this Agreement, or any right granted in this Agreement will be brought in accordance with the dispute resolution provisions contained in the most current form of the Franchise Agreement between the Parties.
Should either party institute or participate in a legal or equitable proceeding against the other seeking to enforce or interpret this Agreement, the non-prevailing party in the proceeding will pay the prevailing party's costs (whether by final judgment or out of court settlement), expert and professional fees, and attorney's fees, including reimbursement of in-house counsel expenses at a reasonable rate comparable to fees generally charged in the legal community for outside counsel, and all costs and fees on appeal.
Said obligation of the nonprevailing party will be deemed to accrue on the date of commencement of such proceedings.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Franchise Agreement will be governed by and construed in accordance with the laws of the State of Kansas. This means that any legal disputes arising from the agreement will be interpreted under Kansas law, regardless of the franchisee's location.
This is a standard clause in franchise agreements, specifying which jurisdiction's laws will apply in case of a dispute. It provides clarity and predictability for both City Wide and its franchisees. However, franchisees should be aware that they may need to familiarize themselves with Kansas law if a dispute arises, potentially incurring additional costs for legal counsel familiar with that jurisdiction.
Furthermore, any legal action to enforce the agreement must comply with the dispute resolution provisions outlined in the most current version of the Franchise Agreement. If either party initiates legal proceedings to enforce or interpret the agreement, the non-prevailing party will be responsible for covering the prevailing party's costs, including attorney's fees and expert witness fees. This obligation starts from the commencement date of the proceedings and extends to all costs and fees on appeal.