Can a City Publications franchisee rely on the franchise disclosure document, including any exhibits, without it being disclaimed by the franchise agreement?
City_Publications Franchise · 2025 FDDAnswer 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 City Publications' 2025 Franchise Disclosure Document, a franchisee can generally rely on the statements made by City Publications in the disclosure document and its exhibits. The Multi-State Addenda included as Exhibit H to the disclosure document states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including claims of fraud. It also specifies that franchisees cannot disclaim reliance on statements made by City Publications or its representatives. This provision overrides any other conflicting terms in any document related to the franchise agreement. Therefore, City Publications franchisees can rely on the FDD and its exhibits, as these cannot be disclaimed by the franchise agreement.
This protection is further reinforced by specific state addenda. For example, the addendum for Virginia states that no statement signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by City Publications. Similarly, the Rhode Island addendum voids any provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of other states' laws regarding claims enforceable under the Rhode Island Franchise Investment Act. These state-specific provisions provide additional assurance to franchisees that their rights and reliance on the FDD are protected under state laws.
Prospective City Publications franchisees should carefully review Exhibit H and any state-specific addenda to fully understand their rights and protections. While the FDD aims to provide a comprehensive overview of the franchise agreement, these addenda clarify that franchisees' reliance on the disclosure document cannot be disclaimed. This ensures that franchisees have legal recourse if they believe they were misled or provided with false information during the franchise sales process. Franchisees should also consult with a legal professional to fully understand the implications of these provisions and how they apply to their specific circumstances.