Does the City Publications franchise agreement address representations made by the franchisor or its personnel to a prospective franchisee?
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 the 2025 City Publications Franchise Disclosure Document, the Multi-State Addenda addresses statements made during the franchise relationship. Specifically, for all states, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement. This also means franchisees cannot disclaim reliance on statements made by City Publications, franchise sellers, or anyone acting on behalf of City Publications. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement.
This addendum is significant for prospective City Publications franchisees because it protects their right to pursue legal claims based on misrepresentations or fraudulent statements made during the franchise sales process. It prevents City Publications from using standard contract language to shield itself from liability for such statements.
This type of clause is not uncommon in franchise agreements, particularly in states with strong franchise protection laws. It aims to ensure that franchisees are not unfairly disadvantaged by overly broad waivers or disclaimers. Franchisees should carefully review the entire franchise agreement and any addenda to understand their rights and obligations, and consult with an attorney if they have any questions or concerns.