In Michigan, can City Publications require a franchisee to resell items not uniquely identified with City Publications?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Other states may require registration, filing or exemption of a franchise under other laws, such as those that regulate the offer and sale of business opportunities or seller-assisted marketing plans.
ITEM 23. RECEIPT
This disclosure document summarizes certain provisions of the franchise agreement and other information in plain language. Read this disclosure document and all agreements carefully. If City Publications Franchise Group, Inc. offers you a franchise, it must provide this disclosure document to you at least 14 calendar days before you sign a binding agreement with or make a payment to the franchisor or an affiliate in connection with the proposed franchise sale. New York state law requires a franchisor to provide the franchise disclosure document at the earlier of the first personal meeting or 10 business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship.
If City Publications Franchise Group Inc. does not deliver this disclosure document on time or if it contains a false or misleading statement, or a material omission, a violation of federal and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the state agency listed on Exhibit A.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
Based on the 2025 FDD, the document does not specify any addenda or modifications to the standard franchise agreement that are specific to Michigan which would address whether City Publications can require a franchisee to resell items not uniquely identified with City Publications. The FDD includes addenda for Maryland and Wisconsin that address specific state laws, but Michigan is not mentioned in a similar context.
Item 23 of the FDD provides general information about the franchise agreement and disclosure requirements, but it does not detail specific regulations or exceptions related to Michigan. The receipt acknowledges that other states may have laws regulating franchise offerings, but it does not elaborate on Michigan's specific requirements regarding the resale of items.
Therefore, it remains unclear whether City Publications can mandate that a franchisee in Michigan resell items not uniquely identified with the franchise. A prospective franchisee should seek clarification from the franchisor regarding any state-specific regulations in Michigan that may affect this aspect of the franchise agreement. It would also be prudent to consult with a legal professional familiar with Michigan franchise law to ensure full compliance and understanding of their rights and obligations.