Can City Publications refuse to renew a franchise on terms generally available to other franchisees of the same class?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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 |
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- In recognition of the requirements of the California Franchise Investment Law, Cal. Corp. Code §§31000-31516 and the California Franchise Relations Act, Cal. Bus. And Prof. Code §§20000-20043, the Franchise Agreement for CITY PUBLICATIONS FRANCHISE GROUP, INC. shall be amended as follows:
- The California Franchise Relations Act provides rights to the Franchise concerning termination or nonrenewal of the Franchise Agreement, which may supersede provisions in the Franchise Agreement, specifically Sections 5.B and 19.
- Sections 5B.10 and 20B.2 of the Franchise Agreement require Franchisee to sign a general release as a condition of renewal and transfer of the franchise; such release shall exclude claims arising under California Franchise Investment Law and California Franchise Relations Act.
- Section 17A of the Franchise Agreement contains a covenant not to compete which extends beyond the expiration or termination of the Franchise Agreement; this covenant may not be enforceable under California law.
- 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.).
- The Franchise Agreement requires litigation to be conducted in a court located in the State of Georgia. This provision might not be enforceable for any cause of action arising under California law.
- The Franchise Agreement requires application of the laws of the State of Georgia. This provision might not be enforceable under California law.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
Based on the 2025 FDD, the Franchise Agreement for City Publications in California is subject to the California Franchise Relations Act, which provides rights to the franchisee concerning termination or nonrenewal of the Franchise Agreement. These rights may supersede the provisions outlined in Sections 5.B and 19 of the Franchise Agreement. This means that California law may offer additional protections to franchisees regarding non-renewal compared to what is stated in the standard City Publications franchise agreement. Similarly, in Rhode Island, Sections 24A and 24B of the Franchise Agreement are amended to state that restricting jurisdiction or venue to a forum outside the state of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under The Rhode Island Franchise Investment Act. This indicates that Rhode Island franchisees have specific legal protections that override certain terms in the standard franchise agreement. In Maryland, the Franchise Agreement is subject to the Maryland Franchise Registration and Disclosure Law, which amends certain sections of the agreement to comply with Maryland law.
For a prospective City Publications franchisee, this means that the enforceability and interpretation of the franchise agreement can vary significantly depending on the state in which the franchise operates. Certain states, like California, Maryland, and Rhode Island, have franchise laws that provide additional rights and protections to franchisees, potentially superseding or amending the terms of the standard franchise agreement. These state-specific amendments often relate to issues such as termination, non-renewal, dispute resolution, and choice of law.
Therefore, it is crucial for potential franchisees to understand the specific franchise laws in their state and how those laws interact with the City Publications franchise agreement. Consulting with an attorney experienced in franchise law is highly recommended to fully assess their rights and obligations. This will help ensure that franchisees are aware of any state-specific protections they may have and how those protections could affect their relationship with City Publications.