What is the purpose of the Washington Addendum to the City Publications Franchise Agreement?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
evise said Franchise Agreement as follows: ◼ Section 18B.1.h of the Franchise Agreement which terminates the Franchise Agreement upon the bankruptcy of the Franchisee may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101, et seq.). 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.:
Washington Addendum to the Franchise Agreement, Franchisee Disclosure Questionnaire, and Related Documents This Amendment to the Franchise Agreement is agreed to this _____ day of _____________, 20___, between CITY PUBLICATIONS FRANCHISE GROUP, INC. and to amend and revise said Franchise Agreement as follows: In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail. RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington. A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the Washington Addendum modifies the standard franchise agreement to comply with Washington state law. Specifically, the addendum ensures that the Washington Franchise Investment Protection Act (Chapter 19.100 RCW) takes precedence over any conflicting terms in the franchise agreement. This act may impact areas such as termination and renewal of the franchise.
For a prospective City Publications franchisee in Washington, this means that certain provisions of the franchise agreement might be superseded by Washington law. The addendum also clarifies that any arbitration or mediation related to a franchise purchased in Washington will occur in Washington, unless otherwise agreed upon. Furthermore, franchisees have the right to bring legal action in Washington for issues related to the sale of franchises or violations of the Washington Franchise Investment Protection Act.
The addendum also states that franchisees cannot waive their rights under the Washington Franchise Investment Protection Act, except in specific settlement scenarios where they are represented by independent counsel. Certain restrictions or limitations on the statute of limitations or rights to a jury trial may not be enforceable. Transfer fees must also reflect the franchisor's reasonable costs. These stipulations protect the franchisee's rights and ensure compliance with Washington state regulations, providing a more balanced legal framework for the franchise relationship.