What is the purpose of amending the agreement to explicitly state compliance with Minnesota law for City Publications?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
curities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until we complete our pre-opening obligations under the franchise agreement. IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Amendment, and understands and consents to be bound by all of its terms. CITY PUBLICATIONS FRANCHISE GROUP, INC.:
FOR THE STATE OF MINNESOTA
| PUBLICATIONS FRANCHISE GROUP, INC. and to a solution of the Minnesota Franchise Law, Minn. Stat 80C.22, and the Rules and Regulations promulgated pursuant thereto by the Minnesota Rule 2860.4400, et. seq., the parties to the attached Franchise Agreement shall be ame franchises governed by Minnesota Law, the Franchisor versual Franchise Law which requires, except in certain specified can days notice of termination (with 60 days to cure) and 180 days notice of termination (with Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not section the section of the first three days are sections 5B.10 and 20B.2 of the Franchise Agreement do not section the first three days are sections 5B.10 and 20B.2 of the Franchise Agreement do not section three days are sections 5B.10 and 20B.2 of the Franchise Agreement do not section three days are sections as a section three days are sections as a section three days are sections as a section three days are sections as a section three days are sections as a section three days are sections as a section three days are sections as a section three days are section to the section three days are section to the section three days are section to the section three days are section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are se | t., Chapter 80C, Sections 80C.01 through the Minnesota Commission of Securities, ment agree as follows: \nended to add that with respect to will comply with the Minnesota ses, that a Franchisee be given 90 days notice of non-renewal of the the provide for a prospective general to the Minnesota Franchise Law. |
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ne Minnesota Commission of Securities, ment agree as follows: \nended to add that with respect to will comply with the Minnesota ses, that a Franchisee be given 90 lays notice of non-renewal of the trovide for a prospective general to the Minnesota Franchise Law. |
| franchises governed by Minnesota Law, the Franchisor version of Franchise Law which requires, except in certain specified can days notice of termination (with 60 days to cure) and 180 days regreement. Sections 5B.10 and 20B.2 of the Franchise Agreement do not | will comply with the Minnesota ses, that a Franchisee be given 90 lays notice of non-renewal of the provide for a prospective general to the Minnesota Franchise Law. to the Minnesota Franchise Law. |
| release of claims against Franchisor which may be subject Minn. Rule 2860.4400D prohibits a franchisor from requiring release. | , a franchisee to assent to a general |
| Section 7 of the Franchise Agreement shall be amended to a Franchise Law, Franchisor will reimburse Franchisee for an the defense of Franchisee's right to use the Marks, so long as in the manner authorized by Franchisor, and so long as Franch and is given the right to manage the defense of the claim in settle or otherwise resolve the claim, and to determine wheth of the claim. | y costs incurred by Franchisee in s Franchisee was using the Marks hisor is timely notified of the claim acluding the right to compromise, |
| ■ Section 19E of the Franchise Agreement shall be deleted in it | ts entirety. |
| Section 24D of the Franchise Agreement shall be amended the Franchised Business or this Agreement or any related agarbitration or an action for a claim that cannot be the subject of three (3) years from the date on which Franchisee or Franchin the exercise of reasonable diligence, of the facts giving rise | greement will be barred unless an of arbitration is commenced within isor knew or should have known, |
| ■ Section 24E shall be deleted in its entirety. | |
| ■ Section 24F shall be deleted in its entirety. | |
| Minn. Stat. §80C.21 and Minn. |
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the amendment to the franchise agreement aims to ensure compliance with Minnesota franchise law, specifically Minn. Stat Chapter 80C, Sections 80C.01 through 80C.22, and the rules and regulations set forth by the Minnesota Commission of Securities under Minnesota Rule 2860.4400, et. seq. This amendment clarifies that City Publications will adhere to Minnesota law in its franchise operations within the state.
The amendment addresses key aspects of Minnesota franchise law. It ensures that franchisees receive the legally required notice periods for termination and non-renewal, providing 90 days' notice for non-renewal and either 90 or 180 days' notice for termination, depending on the circumstances, along with a 60-day period to cure any issues. The amendment also addresses concerns related to general releases, ensuring that franchisees are not required to sign releases that may violate Minnesota franchise law, which prohibits franchisors from requiring such releases.
Furthermore, the amendment modifies the franchise agreement to align with Minnesota law regarding trademark protection and litigation. City Publications will cover the franchisee's costs in defending their right to use the trademarks, provided the franchisee uses the marks as authorized and allows City Publications to manage the defense. The amendment also removes a section related to liquidated damages to ensure compliance with Minnesota law. Finally, it modifies the agreement's terms regarding the statute of limitations for claims, ensuring franchisees have an appropriate timeframe to bring legal action.
In practical terms, this amendment protects the rights of City Publications franchisees in Minnesota by ensuring the franchise agreement complies with state law. It provides franchisees with specific protections related to termination, non-renewal, releases, and legal recourse, reducing potential conflicts and ensuring a fairer business relationship. Prospective franchisees in Minnesota should carefully review this amendment to understand their rights and obligations under the franchise agreement and Minnesota law.