Can a City Publications franchisee create any obligation on the Franchisor's behalf?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and Franchisee are independent contractors. This Agreement does not constitute Franchisee as an agent, legal representative, joint venturer, partner, employee or servant of Franchisor for any purpose whatsoever. Franchisee may not represent to third parties that Franchisee is an agent of Franchisor and it is understood between the parties hereto that Franchisee shall be an independent contractor and is in no way authorized to make any contract, agreement, warranty or representation on behalf of Franchisor, or to create any obligation, express or implied, on Franchisor's behalf. Under no circumstances shall Franchisor be liable for any act, omission, contract, debt or any other obligation of Franchisee. Franchisee specifically acknowledges that Franchisor shall in no way be responsible for any injuries to persons or property resulting from the operation of the Franchised Business. In addition, any third party contractors or vendors retained by Franchisor or Franchisee to perform construction or improvement of the premises of the Franchised Business are independent contractors. During the term of this Agreement and any extension hereof, Franchisee shall hold itself out to the public as an independent contractor operating the business pursuant to a franchise from Franchisor. Franchisee shall take such affirmative action as may be necessary to do so including, without limitation, exhibiting a notice of that fact in a conspicuous place at the business location and on all forms, stationery or other written materials, the content of which Franchisor reserves the right to specify.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the franchise agreement explicitly states that the franchisee cannot create any obligations on behalf of the franchisor. The agreement specifies that the franchisee operates as an independent contractor and is not authorized to act as an agent, legal representative, joint venturer, partner, employee, or servant of City Publications for any purpose. This is a common arrangement in franchising, designed to protect the franchisor from liabilities arising from the franchisee's actions.
This section of the FDD clarifies that City Publications will not be liable for any actions, omissions, contracts, debts, or other obligations of the franchisee. It also states that City Publications is not responsible for injuries to persons or property resulting from the operation of the franchised business. Furthermore, any third-party contractors or vendors hired by either the franchisor or franchisee for construction or improvements are also considered independent contractors.
For a prospective City Publications franchisee, this means they are responsible for all aspects of their business's operations and liabilities. They must hold themselves out to the public as an independent contractor operating under a franchise from City Publications, including displaying a notice of this fact at their business location and on all written materials. This arrangement protects City Publications from being held liable for the franchisee's business decisions and actions.