What is the Maryland Franchise Registration and Disclosure Law cited in the City Publications amendment?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the Maryland Franchise Registration and Disclosure Law is cited as Md. Code Ann., Bus. Reg. §§14-201-14-233. This law necessitates specific amendments to the standard City Publications franchise agreement for franchisees operating in Maryland. These amendments address potential conflicts between the standard agreement and Maryland law, ensuring compliance within the state.
Several clauses within the standard City Publications franchise agreement are modified to align with Maryland law. For instance, any general release required for franchise renewal or transfer cannot exclude claims arising under the Maryland Franchise Registration and Disclosure Law. The agreement also specifies that while Georgia law typically governs the franchise, Maryland law will prevail in cases of conflict, as mandated by the Maryland Franchise Registration and Disclosure Law.
Furthermore, the FDD states that franchisees have the right to bring suit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of any clauses requiring litigation or arbitration to occur in Georgia. Any claims under this law must be initiated within three years of the franchise grant. The Maryland Securities Commissioner also requires a financial assurance due to City Publications' financial condition, leading to a deferral of initial fees and payments until pre-opening obligations are met.