What is the significance of the Minnesota Commission of Securities regarding the regulation of City Publications franchises?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
curities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until we complete our pre-opening obligations under the franchise agreement. 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.:
FOR THE STATE OF MINNESOTA
| PUBLICATIONS FRANCHISE GROUP, INC. and to a solution of the Minnesota Franchise Law, Minn. Stat 80C.22, and the Rules and Regulations promulgated pursuant thereto by the Minnesota Rule 2860.4400, et. seq., the parties to the attached Franchise Agreement shall be ame franchises governed by Minnesota Law, the Franchisor versual Franchise Law which requires, except in certain specified can days notice of termination (with 60 days to cure) and 180 days notice of termination (with Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not section the section of the first three days are sections 5B.10 and 20B.2 of the Franchise Agreement do not section the first three days are sections 5B.10 and 20B.2 of the Franchise Agreement do not section three days are sections 5B.10 and 20B.2 of the Franchise Agreement do not section three days are sections as a section three days are sections as a section three days are sections as a section three days are sections as a section three days are sections as a section three days are sections as a section three days are sections as a section three days are section to the section three days are section to the section three days are section to the section three days are section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are se | t., Chapter 80C, Sections 80C.01 through the Minnesota Commission of Securities, ment agree as follows: \nended to add that with respect to will comply with the Minnesota ses, that a Franchisee be given 90 days notice of non-renewal of the the provide for a prospective general to the Minnesota Franchise Law. |
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ne Minnesota Commission of Securities, ment agree as follows: \nended to add that with respect to will comply with the Minnesota ses, that a Franchisee be given 90 lays notice of non-renewal of the trovide for a prospective general to the Minnesota Franchise Law. |
| franchises governed by Minnesota Law, the Franchisor version of Franchise Law which requires, except in certain specified can days notice of termination (with 60 days to cure) and 180 days regreement. Sections 5B.10 and 20B.2 of the Franchise Agreement do not | will comply with the Minnesota ses, that a Franchisee be given 90 lays notice of non-renewal of the provide for a prospective general to the Minnesota Franchise Law. to the Minnesota Franchise Law. |
| release of claims against Franchisor which may be subject Minn. Rule 2860.4400D prohibits a franchisor from requiring release. | , a franchisee to assent to a general |
| Section 7 of the Franchise Agreement shall be amended to a Franchise Law, Franchisor will reimburse Franchisee for an the defense of Franchisee's right to use the Marks, so long as in the manner authorized by Franchisor, and so long as Franch and is given the right to manage the defense of the claim in settle or otherwise resolve the claim, and to determine wheth of the claim. | y costs incurred by Franchisee in s Franchisee was using the Marks hisor is timely notified of the claim acluding the right to compromise, |
| ■ Section 19E of the Franchise Agreement shall be deleted in it | ts entirety. |
| Section 24D of the Franchise Agreement shall be amended the Franchised Business or this Agreement or any related agarbitration or an action for a claim that cannot be the subject of three (3) years from the date on which Franchisee or Franchin the exercise of reasonable diligence, of the facts giving rise | greement will be barred unless an of arbitration is commenced within isor knew or should have known, |
| ■ Section 24E shall be deleted in its entirety. | |
| ■ Section 24F shall be deleted in its entirety. | |
| Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prohibit Fr | the Offering Circular or Franchise hts as provided for in Minnesota |
| to be conducted outside Minnesota. In addition, nothing in t | |
| Agreement can abrogate or reduce any of Franchisee's right | |
| Statutes, Chapter 80C, or Franchisee's rights to any procedure | |
| by the laws of the jurisdiction. | |
| 2. Each provision of this Amendment shall be effective only to the Minnesota Franchise Law applicable to the provisions are met independe addendum shall be deemed to be inconsistent with any terms or conditions of attachments thereto, the terms of this addendum shall govern. | ent of this Amendment. To the extent this |
| IN WITNESS WHEREOF, each of the undersigned hereby acknowledges havi and consents to be bound by all of its terms. |
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, the Minnesota Commission of Securities plays a role in regulating franchises within the state. To comply with the Minnesota Franchise Law, Minn. Stat. Chapter 80C, Sections 80C.01 through 80C.22, and the rules promulgated by the Minnesota Rule 2860.4400, City Publications must adhere to specific regulations. These regulations include providing franchisees with at least 90 days' notice of non-renewal and ensuring that the franchise agreement does not contain clauses requiring franchisees to provide a general release of claims against City Publications, as such releases are prohibited under Minn. Rule 2860.4400D.
Specifically, several sections of the standard franchise agreement that might conflict with Minnesota law are addressed through an amendment. For example, sections 5B.10 and 20B.2 of the Franchise Agreement are modified to comply with Minnesota law. Additionally, Section 7 is amended to ensure City Publications will cover a franchisee's legal costs if they are sued for using City Publications' marks, provided the franchisee used the marks as authorized and allows City Publications to manage the defense. Section 19E, Section 24E and Section 24F of the Franchise Agreement are deleted in their entirety.
Furthermore, Section 24D of the Franchise Agreement is amended to specify that any arbitration or action related to the franchise must commence within three years from when the franchisee knew or should have known about the facts giving rise to the claim. The FDD also states that nothing in the agreement can reduce any of the Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or Franchisee's rights to any procedure by the laws of the jurisdiction. These stipulations ensure that City Publications franchisees in Minnesota receive protections and rights mandated by state law, overriding any conflicting terms in the standard franchise agreement.