Is the City Publications franchisee required to operate the franchised business in compliance with all applicable laws, ordinances, and regulations?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall secure and maintain in force all required licenses, permits and certificates relating to the operation of the Franchised Business and shall operate the Franchised Business in full compliance with all applicable laws, ordinances and regulations including, without limitation, all government regulations. It is the responsibility of the Franchisee, with his lawyer and CPA, to determine if there are any print taxes or sales taxes due on sales, or use taxes on products and services applicable to the franchised business. Each state has its own rules on these taxes and some states do collect them on businesses like the franchised business. The Franchisor has made no representation to Franchisee about print and sales tax rules in Franchisee's state and it is clearly understood that this is the responsibility of the franchisee.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, franchisees must secure and maintain all required licenses, permits, and certificates to operate their franchised business. Furthermore, they are obligated to operate the business in full compliance with all applicable laws, ordinances, and government regulations. This encompasses all aspects of running the City Publications franchise, ensuring adherence to legal and regulatory standards.
It is the franchisee's responsibility, along with their legal and accounting advisors, to determine if there are any print taxes, sales taxes, or use taxes applicable to the franchised business. City Publications explicitly states that each state has its own rules regarding these taxes, and some states do collect them on businesses like the franchised business.
City Publications makes no representations to the franchisee about print and sales tax rules in the franchisee's state. The FDD clearly states that determining tax obligations is solely the franchisee's responsibility. This highlights the importance of prospective franchisees conducting thorough due diligence and seeking professional advice to ensure they meet all legal and financial obligations.