factual

Which state's laws does the City Publications Franchise Agreement require to be applied?

City_Publications Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 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)

According to the 2025 City Publications Franchise Disclosure Document, the Franchise Agreement generally requires the application of Georgia state laws. However, this provision may not be enforceable under the laws of other states, such as California. The FDD includes specific addenda for certain states like Maryland and Rhode Island, which stipulate that their state laws will take precedence over Georgia law to the extent required by their franchise registration and disclosure laws. These addenda ensure that franchisees in those states retain their rights and protections under local franchise laws, regardless of what the standard City Publications agreement says.

For example, the Maryland addendum states that in the event of a conflict of laws, Maryland law shall prevail to the extent required by the Maryland Franchise Registration and Disclosure Law. Similarly, the Rhode Island addendum indicates that any provision restricting jurisdiction or requiring the application of another state's laws is void with respect to a claim enforceable under the Rhode Island Franchise Investment Act. These state-specific amendments are crucial for prospective franchisees to understand, as they modify the standard agreement to comply with local regulations and protect franchisee rights.

Prospective City Publications franchisees should carefully review the multi-state addenda included as Exhibit H to the Franchise Disclosure Document. It is essential to understand how the laws of their specific state interact with the terms of the Franchise Agreement. Franchisees are encouraged to consult with legal counsel to determine the applicability of state and federal laws to the provisions of the Franchise Agreement, especially those related to venue, jurisdiction, and choice of law. This due diligence will help franchisees understand their rights and obligations and ensure compliance with all applicable laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.