What is the significance of the franchisee's initials on the City Publications FDD for California?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
CityPublicationsFDD2025 Franchisee's Initials: ____
- The Department of Financial Protection and Innovation requires that the franchisor defer the collection of all initial fees from California franchisees until the franchisor has completed all its pre-opening obligations and franchisee is open for business.
- The following URL address is for the franchisor's website:
FRANCHISOR'S WEBSITE HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENT OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT www.dfpi.ca.gov.
Section 31512.1 Franchise Agreement Provisions Void as Contrary to Public Policy:
Any provision of a franchise agreement, franchise disclosure document, acknowledgement, questionnaire, or other writing, including any exhibit thereto, disclaiming or denying any of the following shall be deemed contrary to public policy and shall be void and unenforceable:
- (a) Representations made by the franchisor or its personnel or agents to a prospective franchisee;
- (b) Reliance by a franchisee on any representations made by the franchisor or its personnel or agents;
- (c) Reliance by a franchisee on the franchise disclosure document, including any exhibit thereto;
- (d) Violations of any provision of this division.
FOR THE STATE OF HAWAII
[Item 23: RECEIPT]
EXHIBIT H TO THE DISCLOSURE DOCUMENT
CITY PUBLICATIONS FRANCHISE GROUP, INC. MULTI-STATE ADDENDA
CityPublicationsFDD2025 Franchisee's Initials: ____
Addendum To The CITY PUBLICATIONS FRANCHISE GROUP, INC. Disclosure Document
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.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the franchisee's initials are required on the FDD. For California franchisees, the Department of Financial Protection and Innovation mandates that City Publications must defer collecting initial fees until all pre-opening obligations are met and the franchisee is open for business.
Additionally, the FDD states that any provision disclaiming or denying representations made by City Publications, reliance by a franchisee on those representations, reliance on the FDD itself, or violations of franchise law are void and unenforceable in California. This protects the franchisee from unknowingly waiving their rights.
The multi-state addenda included as an exhibit to the City Publications Disclosure Document also states that no statement signed by the franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by City Publications. This provision supersedes any other term in any document related to the franchise agreement, further emphasizing franchisee protection.