What is the waiting period, after written notification, before a controversy, dispute, or claim involving City Wide is submitted for binding arbitration?
City_Wide Franchise · 2025 FDDAnswer 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, any controversy, dispute, or claim that arises between a franchisee and City Wide must first undergo a 15-day resolution period after written notification before it can be submitted for binding arbitration. This applies to disputes related to the Franchise Agreement, other related agreements, the relationship between the parties, the validity of agreements, or any operational standards, excluding those related to trademarks or real estate leases.
This mandatory waiting period is designed to encourage the parties to resolve their issues informally before resorting to arbitration, which can be a more costly and time-consuming process. By requiring a 15-day window for resolution, City Wide provides an opportunity for open communication and negotiation, potentially leading to a mutually agreeable solution without the need for formal arbitration.
If the dispute remains unresolved after the 15-day period, either party can then submit the matter for binding arbitration in accordance with the Commercial Rules of the American Arbitration Association. The arbitration will take place in Lenexa, Kansas, or another location designated by City Wide within the Kansas City, Missouri Metropolitan area. This clause ensures a structured process for conflict resolution while also setting expectations for franchisees regarding the location and rules governing potential arbitration proceedings.