What California laws are recognized as requirements in the City Publications Franchise Agreement?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
| FOR THE STATE OF CAL | IFORNIA |
|---|---|
| ---------------------- | --------- |
| Year ending December 31: | ||
|---|---|---|
| 2025 | $ 29,393 | |
| 2026 | 22,613 |
-
- In recognition of the requirements of the California Franchise Investment Law, Cal. Corp. Code §§31000-31516 and the California Franchise Relations Act, Cal. Bus. And Prof. Code §§20000-20043, the Franchise Agreement for CITY PUBLICATIONS FRANCHISE GROUP, INC. shall be amended as follows:
- The California Franchise Relations Act provides rights to the Franchise concerning termination or nonrenewal of the Franchise Agreement, which may supersede provisions in the Franchise Agreement, specifically Sections 5.B and 19.
- Sections 5B.10 and 20B.2 of the Franchise Agreement require Franchisee to sign a general release as a condition of renewal and transfer of the franchise; such release shall exclude claims arising under California Franchise Investment Law and California Franchise Relations Act.
- Section 17A of the Franchise Agreement contains a covenant not to compete which extends beyond the expiration or termination of the Franchise Agreement; this covenant may not be enforceable under California law.
- Section 18B.1.h of the Franchise Agreement which terminates the Franchise Agreement upon the bankruptcy of the Franchisee may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101, et seq.).
- The Franchise Agreement requires litigation to be conducted in a court located in the State of Georgia. This provision might not be enforceable for any cause of action arising under California law.
- The Franchise Agreement requires application of the laws of the State of Georgia. This provision might not be enforceable under California law.
- Section 19E of the Franchise Agreement contains a liquidated damages clause. Under California Civil Code Section 1671, certain liquidated damages clauses are unenforceable.
- Section 24G of the Franchise Agreement requires binding arbitration.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, the franchise agreement recognizes the requirements of two California laws. These are the California Franchise Investment Law, Cal. Corp. Code §§31000-31516, and the California Franchise Relations Act, Cal. Bus. and Prof. Code §§20000-20043.
The California Franchise Relations Act provides specific rights to franchisees regarding the termination or nonrenewal of their franchise agreement, which may override certain provisions in the standard City Publications agreement, specifically Sections 5.B and 19. Furthermore, any general release that a City Publications franchisee is required to sign as a condition of renewal or transfer must exclude claims arising under both the California Franchise Investment Law and the California Franchise Relations Act.
Additionally, the FDD states that certain sections of the City Publications Franchise Agreement may not be enforceable under California law. Specifically, a covenant not to compete extending beyond the termination of the agreement, a requirement for litigation to be conducted in Georgia, a clause requiring the application of Georgia law, and certain liquidated damages clauses may not be enforceable in California. Prospective franchisees are encouraged to seek legal counsel to determine the applicability of California and federal laws to provisions restricting venue to Georgia.