Does the City Publications franchise agreement address a franchisee's reliance on the franchise disclosure document, including any exhibit?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Multi-State Addenda included as Exhibit H addresses a franchisee's reliance on statements made by City Publications. Specifically, for all states, no statement, questionnaire, or acknowledgment signed by a franchisee can disclaim reliance on any statement made by City Publications, its franchise seller, or anyone acting on its behalf. This protection extends to claims of fraud in the inducement under applicable state franchise laws. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.
This clause is significant for prospective City Publications franchisees because it prevents them from inadvertently waiving their right to claim they relied on information provided by City Publications during the franchise sales process. This protection is particularly relevant if a franchisee later alleges that City Publications made false or misleading statements to induce them into signing the franchise agreement. The addendum ensures that franchisees can pursue such claims, even if they signed documents containing waivers or disclaimers.
Several states, including Rhode Island, Virginia, and Washington, have specific addenda that further protect franchisees' rights. For example, Virginia's addendum reinforces that franchisees cannot waive claims of reliance on statements made by City Publications. Washington's addendum states that the Washington Franchise Investment Protection Act will prevail in case of conflicting laws. These state-specific provisions highlight the importance of carefully reviewing the Multi-State Addenda to understand the full scope of franchisee protections.
Prospective franchisees should carefully review Exhibit H and any state-specific addenda to fully understand their rights and protections regarding reliance on statements made by City Publications. They should also consult with an attorney to ensure they understand the implications of these provisions and how they apply to their specific circumstances.