Does the New York amendment for City Publications address routine litigation?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
The following is added to the end of the "Summary" sections of Item 17(c), titled "Requirements for franchisee to renew or extend," and Item 17(m), entitled "Conditions for franchisor approval of transfer": However, to the extent required by applicable law, all rights you enjoy and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this proviso that the non-waiver provisions of General Business Law Sections 687(4) and 687(5) be satisfied.
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 addresses routine litigation in Item 23. It states that no 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.
This statement assures potential franchisees that City Publications discloses any significant pending litigation. The inclusion of 'routine litigation incidental to the business' suggests that such minor legal matters are considered normal and do not necessarily indicate a systemic problem with the franchise. This is a common disclosure in franchise agreements, as it provides transparency regarding the franchisor's legal standing.
Furthermore, the amendment specifies that rights and causes of action arising from Article 33 of the General Business Law of the State of New York remain in force, satisfying the non-waiver provisions of General Business Law Sections 687(4) and 687(5). This ensures that franchisees in New York retain their legal rights under state law, which is a protective measure for franchisees.