factual

For a City Publications franchise in Maryland, what specific law governs franchise registrations and disclosures?

City_Publications Franchise · 2025 FDD

Answer from 2025 FDD Document

FOR 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; the requirement shall not limit any rights Franchisee may have under the Maryland Franchise Registration and Disclosure Law to bring suit in the State of Maryland. ◼ Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three (3) years after the grant of the franchise. 2. 3. Each provision of this Amendment shall be effective only to the extent that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law applicable to the provisions are met independent of this Amendment. To the extent this addendum shall be deemed to be inconsistent with any terms or conditions of said Franchise Agreement or exhibits or attachments thereto, the terms of this addendum shall govern. Based on our financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until we complete our pre-opening obligations under the franchise agreement. IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Amendment, and understands and consents to be bound by all of its terms. CITY PUBLICATIONS FRANCHISE GROUP, INC.:

Source: Item 23 — RECEIPT (FDD pages 39–129)

What This Means (2025 FDD)

According to City Publications' 2025 Franchise Disclosure Document, the Maryland Franchise Registration and Disclosure Law, specifically Md. Code Ann., Bus. Reg. §§14-201-14-233, governs franchise registrations and disclosures in Maryland. This law is referenced in an amendment to the franchise agreement that addresses several key points to ensure compliance.

The amendment clarifies that any general release required for renewal or transfer of the franchise will exclude claims arising under the Maryland Franchise Registration and Disclosure Law. It also states that while the franchise agreement is generally governed by Georgia law, Maryland law will prevail to the extent required by the Maryland Franchise Registration and Disclosure Law in case of a conflict. Furthermore, the amendment ensures that franchisees have the right to bring suit in Maryland under this law, regardless of any clauses requiring litigation or arbitration to be conducted in Georgia.

Additionally, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the franchise is granted. Due to City Publications' financial condition, the Maryland Securities Commissioner requires a financial assurance, leading to the deferral of initial fees and payments until the completion of pre-opening obligations. These stipulations collectively aim to protect the rights and interests of City Publications franchisees in Maryland under the state's franchise law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.