Does the City Publications FDD specify a choice of law for disputes?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
- The Franchise Agreement requires application of the laws of the State of Georgia.
This provision might not be enforceable under California law.
- Section 24A of the Franchise Agreement requires that the franchise be governed by Georgia Law; however, in the event of a conflict of lawsto the extent required by the Maryland Franchise Registration and Disclosure Law, Maryland law shall prevail.
◼ Sections 24A and 24B of the Franchise Agreement shall be amended to state that restricting jurisdiction or venue to a forum outside the state of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under The Rhode Island Franchise Investment Act.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications's 2025 Franchise Disclosure Document, the franchise agreement generally requires application of the laws of the State of Georgia. However, this provision may not be enforceable under California law. For franchisees in Maryland, the FDD states that 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 franchisees in Rhode Island, Sections 24A of the Franchise Agreement shall be amended to state that restricting jurisdiction or venue to a forum outside the state of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under The Rhode Island Franchise Investment Act.
This means that while the standard City Publications franchise agreement specifies Georgia law, franchisees in certain states like California, Maryland, and Rhode Island may have the right to have their local state laws apply to disputes, especially those arising under their state's franchise laws. This is designed to protect franchisees from potentially unfavorable terms in the agreement that might conflict with their state's regulations.
Prospective franchisees should be aware of this multi-state addendum and understand how it might affect their rights depending on where their franchise is located. It is essential to consult with legal counsel to determine the specific implications of these choice of law provisions and how they interact with federal and state laws. This is particularly important if a franchisee anticipates potential disputes with City Publications, as the applicable law can significantly impact the outcome of any legal proceedings.