Does the New York amendment for City Publications address unfair or deceptive practices?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
The following is to be added at the end of Item 3:
Except as provided above, with regard 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.
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 unfair or deceptive practices. Specifically, it states that no party (including the franchisor, its predecessors, individuals identified in Item 2, or affiliates offering franchises under the franchisor's trademark) has any pending administrative, criminal, or civil actions alleging unfair or deceptive practices. This information is to be added at the end of Item 3 in the FDD.
This inclusion in the FDD aims to provide prospective City Publications franchisees in New York with additional transparency regarding any past or current legal issues involving unfair or deceptive practices by the franchisor or related parties. It assures potential franchisees that, to the best of the franchisor's knowledge, there are no ongoing or pending actions of this nature.
It is important to note that this disclosure only covers pending actions. The amendment does not explicitly address past instances or settlements related to unfair or deceptive practices. A prospective franchisee should consider this information in conjunction with other due diligence efforts, such as consulting with current and former franchisees and seeking legal counsel, to gain a comprehensive understanding of the franchisor's business practices and legal history.