Does the New York amendment for City Publications address criminal actions?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
The following is to be added at the end of Item 3: With the exception of what is stated above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark: A. No such party has an administrative, criminal, or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations. B. No such party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations. C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations. D.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the New York amendment addresses criminal actions in Item 23. Specifically, it states that with the exception of what is stated above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark. It states that no such party has an administrative, criminal, or civil action pending against that person alleging a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations. Also, it states that no such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
This means that City Publications is disclosing whether any party associated with offering the franchise has faced legal actions related to criminal behavior, fraud, or violations of franchise laws. This disclosure helps prospective franchisees assess the integrity and legal standing of the franchisor and its affiliates. The inclusion of both pending actions and past convictions within a 10-year period provides a comprehensive view of potential legal risks.
It is important for potential City Publications franchisees in New York to carefully review these disclosures and consider seeking legal counsel to fully understand the implications. This ensures they are aware of any past or ongoing legal issues involving the franchisor that could impact their investment and business operations. The FDD also advises contacting the Federal Trade Commission and the appropriate state or provincial authority if anything in the Franchise Disclosure Document is untrue.