Is it permissible for any City Publications franchise agreement provision to disclaim a franchisee's reliance on the franchise disclosure document?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| e Fees: | ||
|---|---|---|
| Balance beginning of year | $ 56,679 | $ 48,752 |
| Deferral of non-refundable franchise fees | 59,400 | 30,300 |
| Recognition of non-refundable franchise fees | (34,253) | (22,373) |
| Balance at end of year | $ 81,826 | $ 56,679 |
EXHIBIT C TO THE FRANCHISE AGREEMENT
MULTI-STATE ADDENDA
AMENDMENT TO THE FRANCHISE AGREEMENT CITY PUBLICATIONS FRANCHISE GROUP, INC.
FOR ALL STATES
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
| FOR THE STATE OF CAL | IFORNIA |
|---|---|
| ---------------------- | --------- |
| Year ending December 31: | ||
|---|---|---|
| 2025 | $ 29,393 | |
| 2026 | 22,613 |
-
- In recognition of the requirements of the California Franchise Investment Law, Cal. Corp.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the franchise agreement cannot disclaim a franchisee's reliance on the franchise disclosure document. Specifically, for all states, no statement, questionnaire, or acknowledgment signed by a franchisee can disclaim reliance on any statement made by the franchisor or anyone acting on their behalf. This provision overrides any other conflicting terms in any document related to the franchise.
For franchisees in California, any provision in any document (including the franchise agreement, disclosure document, or any acknowledgment) that disclaims or denies a franchisee's reliance on the franchise disclosure document is considered against public policy and is void and unenforceable. This ensures that franchisees can depend on the information provided in the FDD when making their investment decision.
These protections are in place to prevent City Publications from using contractual language to avoid responsibility for the accuracy and completeness of the information provided to potential franchisees. This helps to ensure that franchisees are able to make informed decisions based on the FDD without fear of such disclaimers being enforced against them.