Who is covered by the general release that a City Publications franchisee must execute for renewal?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
◼ 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 the Maryland Franchise Registration and Disclosure Law.
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.
◼ Any general release as a condition of renewal or transfer will be void with respect to claims under the Rhode Island Franchise Investment Act.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) 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.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the general release that a franchisee must sign as a condition of renewal and transfer of the franchise excludes certain claims, depending on the state.
For franchisees in Maryland, the release excludes claims arising under the Maryland Franchise Registration and Disclosure Law. This means a franchisee in Maryland does not waive their rights to sue City Publications for violations of Maryland franchise law, even after signing the general release.
For franchisees in California, the release excludes claims arising under the California Franchise Investment Law and the California Franchise Relations Act. Similarly, in Rhode Island, any general release as a condition of renewal or transfer will be void with respect to claims under the Rhode Island Franchise Investment Act. This ensures that franchisees in these states retain their rights under their respective state franchise laws, despite the general release requirement.
In Virginia, no statement signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by City Publications. This provision supersedes any other term in any document related to the franchise.