factual

Does a City Publications franchisee waive questions of personal jurisdiction or venue?

City_Publications Franchise · 2025 FDD

Answer from 2025 FDD Document

TATE OF INDIANA**

STATE EFFECTIVE DATE
California April 21, 2024
Hawaii
Illinois April 30, 2024
Indiana June 21, 2024
Maryland November 4, 2024
Michigan July 16, 2024
Minnesota September 17, 2024
New York June 13, 2024
North Dakota
Rhode Island
South Dakota
Virginia November 15, 2024
Washington October 18, 2024
Wisconsin October 7, 2024

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.:

FOR THE STATE OF MINNESOTA

| PUBLICATIONS FRANCHISE GROUP, INC. and to a solution of the Minnesota Franchise Law, Minn. Stat 80C.22, and the Rules and Regulations promulgated pursuant thereto by the Minnesota Rule 2860.4400, et.

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

What This Means (2025 FDD)

According to the 2025 City Publications Franchise Disclosure Document, the franchise agreement requires that Georgia law govern the agreement. However, the FDD includes amendments for franchisees in certain states that address venue and choice of law.

For example, the FDD states that for Maryland franchisees, the requirement to conduct litigation or arbitration in Georgia will not limit any rights the franchisee may have under the Maryland Franchise Registration and Disclosure Law to bring suit in Maryland. Similarly, for Rhode Island franchisees, the FDD states that any provision in the Franchise Agreement restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.

For Virginia franchisees, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee shall waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaiming reliance on any statement made by the franchisor. The FDD also states that in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act will prevail for Washington franchisees. Therefore, depending on the state where the franchisee is located, certain provisions of the franchise agreement may be superseded by state 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.