Where can I find information about the transferability of interest in the City Publications franchise agreement?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
THE STATE OF MARYLAND**
This Amendment to the Franchise Agreement is agreed to this day of, 20, between CITY PUBLICATIONS FRANCHISE GROUP, INC. and as follows: to amend and revise said Franchise Agreement 1. In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, Md. Code be amended as follows: Ann., Bus. Reg. §§14-201-14-233, the Franchise Agreement for CITY PUBLICATIONS FRANCHISE GROUP, INC. shall ◼ 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. ◼ Section 18B1.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.). ◼ 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 24B and 24G of the Franchise Agreement require litigation or arbitration to be conducted in the State of Georgia;
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, information regarding the transferability of the franchise agreement can be found in several sections, particularly in the state-specific addenda. For instance, the addenda for California, Maryland, and Rhode Island mention sections of the Franchise Agreement (specifically Sections 5B.10 and 20B.2) that require a franchisee to sign a general release as a condition of the transfer of the franchise. However, these addenda also stipulate that such releases must exclude claims arising under their respective state's franchise laws.
These state-specific amendments indicate that the standard City Publications franchise agreement may have provisions regarding transfer, but these provisions are subject to state laws that protect franchisees. This means that the conditions for transfer, including any required releases, may vary depending on the franchisee's location. A prospective franchisee should carefully review the multi-state addenda to understand how their state's laws modify the standard franchise agreement terms regarding transferability.
It is important for potential City Publications franchisees to consult with legal counsel to fully understand the implications of these transfer provisions and how they are affected by state laws. This will ensure that they are aware of their rights and obligations when considering a transfer of their franchise interest. The FDD also includes a copy of the Franchise Agreement as an exhibit, which would contain the full details of the transfer process.