What happens to the original City Publications Franchise Agreement upon renewal?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, the original franchise agreement is subject to amendments and revisions upon renewal, particularly to comply with state-specific franchise laws. For franchisees in California, Maryland, Rhode Island, Virginia, and Washington, specific amendments are made to the franchise agreement to ensure compliance with their respective state franchise laws. These amendments address issues such as franchisee rights concerning termination or nonrenewal, releases of claims, covenants not to compete, termination upon bankruptcy, and governing law. These amendments are agreed upon between City Publications and the franchisee.
In California, the Franchise Agreement is amended to align with the California Franchise Investment Law and the California Franchise Relations Act. This includes provisions regarding termination, nonrenewal, required releases, non-compete clauses, termination upon bankruptcy, litigation venue, governing law, and liquidated damages. Similarly, for Maryland franchisees, amendments ensure compliance with the Maryland Franchise Registration and Disclosure Law, addressing releases, termination upon bankruptcy, governing law, litigation or arbitration venue, and claim limitations. A financial assurance may be required based on City Publications' financial condition, deferring initial fees until pre-opening obligations are met.
For franchisees in Rhode Island, amendments to the City Publications Franchise Agreement ensure compliance with The Rhode Island Franchise Investment Act, specifically addressing releases and restrictions on jurisdiction or venue outside of Rhode Island. In Virginia, the amendment clarifies that the termination of the Franchise Agreement upon the franchisee's bankruptcy may not be enforceable under federal bankruptcy law. For franchisees in Washington, the agreement is revised to ensure compliance with the Washington Franchise Investment Protection Act, addressing issues such as termination, renewal, arbitration or mediation sites, litigation venues, waivers of rights, statute of limitations, and transfer fees.
These amendments are crucial for prospective City Publications franchisees as they highlight the importance of understanding how state laws can modify the standard franchise agreement. Franchisees should carefully review these state-specific amendments and consult with legal counsel to fully understand their rights and obligations in their specific state. The amendments ensure that the franchise agreement complies with local laws, providing additional protections and clarifying certain provisions that might otherwise be governed by the standard terms of the agreement.