Can a City Publications franchisee's reliance on representations made by the franchisor be disclaimed in any agreement?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| e Fees: | ||
|---|---|---|
| Balance beginning of year | $ 56,679 | $ 48,752 |
| Deferral of non-refundable franchise fees | 59,400 | 30,300 |
| Recognition of non-refundable franchise fees | (34,253) | (22,373) |
| Balance at end of year | $ 81,826 | $ 56,679 |
EXHIBIT C TO THE FRANCHISE AGREEMENT
MULTI-STATE ADDENDA
AMENDMENT TO THE FRANCHISE AGREEMENT CITY PUBLICATIONS FRANCHISE GROUP, INC.
FOR ALL STATES
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.
| FOR THE STATE OF CAL | IFORNIA |
|---|---|
| ---------------------- | --------- |
| Year ending December 31: | ||
|---|---|---|
| 2025 | $ 29,393 | |
| 2026 | 22,613 |
-
- In recognition of the requirements of the California Franchise Investment Law, Cal. Corp.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, specifically Exhibit C, no statement, questionnaire, or acknowledgment signed by a franchisee related to the franchise commencement can disclaim reliance on any statement made by City Publications, its sellers, or representatives. This provision overrides any conflicting terms in any document executed for the franchise. This protection applies across all states.
Furthermore, for franchisees in California, Section 31512.1 of the California Franchise Agreement explicitly states that any provision in any agreement that disclaims or denies reliance by a franchisee on representations made by City Publications or its agents, or on the Franchise Disclosure Document itself, is against public policy and therefore void and unenforceable. This ensures that California franchisees can rely on the information provided by City Publications during the franchise sales process.
These clauses are designed to protect franchisees by ensuring they can hold City Publications accountable for the representations made during the franchise sales process. This prevents City Publications from using contractual language to avoid responsibility for statements that induce a franchisee to invest in the franchise. Prospective franchisees should carefully review these provisions and understand their rights regarding reliance on franchisor representations.