Does the City Publications FDD include a summary section regarding choice of law?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
d by applicable law, all rights you enjoy and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this proviso that the non-waiver provisions of General Business Law Sections 687(4) and 687(5) be satisfied.
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- The following language replaces the "Summary" section of Item 17(d), titled "Termination by franchisee": You may terminate the agreement on any grounds available by law.
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- The following is added to the end of the "Summary" sections of Item 17(v), titled "Choice of forum", and Item 17(w), titled "Choice of law": The foregoing choice of law should not be considered a waiver of any right conferred upon the franchisor or upon the franchisee by Article 33 of the General Business Law of the State of New York
FOR RESIDENTS OF THE STATE OF NORTH DAKOTA
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- ITEM 5 of the Disclosure Document is amended by the addition of the following language to the original language:
- ◼ Refund and cancellation provisions will be inapplicable to franchises operating under North Dakota Law, North Dakota Century Code Annotated Chapter 51-19, Sections 51-19-01 through 51-19-17.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, Item 23 includes information that amends the choice of law provisions outlined in Item 17(w). Specifically, for residents of New York, the choice of law should not be considered a waiver of any right conferred upon the franchisor or the franchisee by Article 33 of the General Business Law of the State of New York. For residents of Maryland, Section 24A of the Franchise Agreement requires that the franchise be governed by Georgia Law; however, in the event of a conflict of laws to the extent required by the Maryland Franchise Registration and Disclosure Law, Maryland law shall prevail. For residents of North Dakota, Item 17(w) is amended to state in the event of a conflict of laws, North Dakota Law will control.
For prospective City Publications franchisees, these stipulations are important because they clarify which state's laws will govern the franchise agreement, potentially impacting their rights and obligations. Franchise agreements typically include a choice of law provision, which specifies the jurisdiction whose laws will be used to interpret the agreement. However, as these amendments indicate, certain states like New York, Maryland, and North Dakota, have specific regulations to protect franchisees, which may override the standard choice of law provision.
It is crucial for potential City Publications franchisees to understand these state-specific amendments, as they can significantly affect the resolution of disputes and the enforcement of the franchise agreement. Consulting with an attorney is advisable to fully grasp the implications of these choice of law provisions and how they apply to their specific circumstances, especially considering the franchisee's state of residence and operation.