What is the significance of the franchisee's initials on the receipt pages for City Publications in Hawaii?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
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
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 receipt pages in Hawaii. This requirement is specified under the section dedicated to the state of Hawaii. This indicates that the franchisee must initial the receipt, acknowledging the transaction.
For a prospective City Publications franchisee in Hawaii, this means they must ensure that all receipts generated include a space for their initials and that they, or their employees, consistently initial these receipts. This could be part of a verification process or an acknowledgment of the transaction details.
The FDD also includes a general receipt for all states, as well as a multi-state addenda. The multi-state addenda states that no statement, questionnaire, or acknowledgment signed by a franchisee shall waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaiming reliance on any statement made by the franchisor. This provision supersedes any other term of any document executed in connection with the franchise. This may be related to the initialing of the receipt.
It would be prudent for a potential franchisee to clarify with City Publications the exact purpose and legal implications of initialing receipts in Hawaii to ensure full compliance and understanding of this requirement.