factual

Can a City Publications franchisee rely on the franchise disclosure document, including any exhibit?

City_Publications Franchise · 2025 FDD

Answer 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, a franchisee cannot disclaim reliance on statements made by City Publications or its representatives. Specifically, Exhibit H, titled "Multi-State Addenda," states that no signed statement, questionnaire, or acknowledgment can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by City Publications or its representatives. This provision overrides any conflicting terms in any document related to the franchise. This protection applies to all states.

This means that a City Publications franchisee is entitled to depend on the information provided by the franchisor, franchise seller, or anyone acting on behalf of City Publications. The franchisee can't waive their right to claim they relied on these statements, even if they sign a document suggesting otherwise. This is particularly important in cases of potential misrepresentation or fraud, as the franchisee retains the right to seek legal recourse based on the information provided during the franchise sales process.

For prospective City Publications franchisees, this addendum offers a degree of protection. It ensures that any representations made by the franchisor during the sales process can be held accountable, and the franchisee cannot inadvertently waive their rights through standard documentation. This is a beneficial clause for franchisees, as it prevents City Publications from disclaiming responsibility for statements made to induce the franchisee into the agreement. Franchisees should still conduct thorough due diligence and seek legal counsel to fully understand their rights and obligations, but this clause provides an additional layer of security.

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.