Does the New York amendment for City Publications address embezzlement?
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 the 2025 City Publications Franchise Disclosure Document, the New York amendment includes information regarding actions alleging embezzlement. Specifically, it states that no party has an administrative, criminal, or civil action pending against them alleging embezzlement. It also states that no 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 embezzlement.
This inclusion in the New York amendment provides prospective City Publications franchisees in New York with additional assurance regarding the background and integrity of the franchisor and its affiliates. It indicates that City Publications has taken steps to disclose any past or pending legal issues related to embezzlement, which can help franchisees make a more informed decision about investing in the franchise.
It is important for potential franchisees to carefully review this information and consider its implications. While the amendment provides some level of assurance, it is still crucial to conduct thorough due diligence and seek legal counsel to fully understand the risks and benefits of investing in a City Publications franchise.