If a provision in the City Publications franchise agreement disclaims reliance by a franchisee on the franchise disclosure document, is that provision enforceable?
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, the enforceability of a provision disclaiming reliance on the franchise disclosure document depends on the state. For all states, no statement signed by a franchisee can disclaim reliance on any statement made by City Publications or its representatives. This supersedes any other term in any document related to the franchise. However, California has specific regulations regarding such disclaimers.
Specifically for California franchisees, any provision in any document (including the franchise agreement or FDD) that disclaims or denies reliance by a franchisee on the franchise disclosure document is considered against public policy and is void and unenforceable. This means that City Publications cannot enforce any clause that prevents a franchisee from claiming they relied on the FDD or representations made by City Publications during the franchise sales process.
This protection for franchisees is significant because it allows them to hold City Publications accountable for the information provided during the franchise sales process. If a franchisee believes they were misled by the FDD or by statements made by City Publications representatives, they can pursue legal action without being barred by a disclaimer of reliance. Prospective franchisees should consult with legal counsel to fully understand their rights and protections under applicable state laws.