Does the City Publications Franchise Agreement require a general release as a condition of transfer or renewal?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
de §§31000-31516 and the California Franchise Relations Act, Cal. Bus. And Prof. Code §§20000-20043, the Franchise Agreement for CITY PUBLICATIONS FRANCHISE GROUP, INC. shall be amended as follows:
- The California Franchise Relations Act provides rights to the Franchise concerning termination or nonrenewal of the Franchise Agreement, which may supersede provisions in the Franchise Agreement, specifically Sections 5.B and 19.
- 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 California Franchise Investment Law and California Franchise Relations Act.
- Section 17A of the Franchise Agreement contains a covenant not to compete which extends beyond the expiration or termination of the Franchise Agreement; this covenant may not be enforceable under California law.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, the Franchise Agreement requires franchisees to sign a general release as a condition of renewal and transfer of the franchise. However, this requirement is subject to certain state-specific exceptions.
For franchisees in Maryland, the release must exclude claims arising under the Maryland Franchise Registration and Disclosure Law. Similarly, for franchisees in California, the release must exclude claims arising under the California Franchise Investment Law and the California Franchise Relations Act. In Rhode Island, any general release required as a condition of renewal or transfer will be void with respect to claims under The Rhode Island Franchise Investment Act.
These state-specific stipulations are crucial for prospective franchisees to understand. While City Publications' standard agreement includes a general release, the enforceability and scope of this release are limited by state laws designed to protect franchisees. Therefore, franchisees should be aware of their rights under these state laws and consult with legal counsel to fully understand the implications of signing a general release in their specific state.