What release must the transferee of a City Publications franchise execute?

According to City Publications' 2025 Franchise Disclosure Document, a transferee of a franchise must execute a general release in a form satisfactory to City Publications. This release covers any and all claims against City Publications and its officers, directors, shareholders, and employees, both in their corporate and individual capacities. The claims pertain to any representations regarding the franchise or the business conducted, or any other matter that may have been made to the transferee by the transferring franchisee.

This requirement means that before a transfer can be completed, the incoming franchisee must waive their rights to sue City Publications over any claims related to the franchise. This includes claims about what the previous franchisee might have told them about the business. This is a significant point for potential franchisees to consider, as it limits their legal recourse against City Publications regarding the franchise's representations or the business's operation.

However, some states such as California and Rhode Island have addenda that modify this requirement. In California and Rhode Island, the general release that the franchisee must sign excludes claims arising under the California Franchise Investment Law and California Franchise Relations Act, and the Rhode Island Franchise Investment Act, respectively. Therefore, a franchisee in those states would not be waiving those specific rights. Similarly, 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.

Prospective franchisees should carefully review the franchise agreement and any state-specific addenda with legal counsel to fully understand the scope and implications of this release, as it can significantly impact their rights and potential legal actions against City Publications.