Does the City Publications franchise agreement allow disclaiming representations made by the franchisor to a prospective franchisee?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| e Fees: | ||
|---|---|---|
| Balance beginning of year | $ 56,679 | $ 48,752 |
| Deferral of non-refundable franchise fees | 59,400 | 30,300 |
| Recognition of non-refundable franchise fees | (34,253) | (22,373) |
| Balance at end of year | $ 81,826 | $ 56,679 |
EXHIBIT C TO THE FRANCHISE AGREEMENT
MULTI-STATE ADDENDA
AMENDMENT TO THE FRANCHISE AGREEMENT CITY PUBLICATIONS FRANCHISE GROUP, INC.
FOR ALL STATES
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.
| FOR THE STATE OF CAL | IFORNIA |
|---|---|
| ---------------------- | --------- |
| Year ending December 31: | ||
|---|---|---|
| 2025 | $ 29,393 | |
| 2026 | 22,613 |
-
- In recognition of the requirements of the California Franchise Investment Law, Cal. Corp. Code §§31000-31516 and the California Franchise Relations Act, Cal. Bus. And Prof.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the franchise agreement includes provisions that address the disclaimer of representations made by the franchisor. For all states, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.
For franchisees in California, the FDD explicitly states that any provision in the franchise agreement, franchise disclosure document, or any related writing that disclaims or denies representations made by City Publications or its agents to a prospective franchisee is considered against public policy and is void and unenforceable. This includes disclaimers of reliance by a franchisee on any representations made by City Publications, its personnel, or agents, as well as reliance on the franchise disclosure document itself.
These stipulations protect franchisees by ensuring they can rely on the information provided by City Publications during the franchise sales process and in the FDD. It prevents City Publications from later denying the validity of their representations or disclaiming responsibility for the accuracy of the information provided. This is a beneficial provision for prospective franchisees, as it offers legal recourse if they believe they were misled during the franchise purchasing process.