Does the New York amendment for City Publications address a felony?
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 includes information regarding felonies. Specifically, it states that no party has an administrative, criminal, or civil action pending against them 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. It also states that no such party has been convicted of a felony or pleaded nolo contendere to a felony charge.
This means that City Publications is disclosing whether the franchisor, its predecessors, people identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark has been involved in legal actions related to felonies. This disclosure helps potential franchisees assess the background and integrity of the City Publications franchise system and its key personnel.
This information is crucial for prospective franchisees as it provides insight into the legal and ethical standing of City Publications and its associates. A history of felonies or related legal issues could indicate potential risks or instability within the franchise system. Therefore, reviewing this information carefully is an important part of the due diligence process before investing in a City Publications franchise.