Under what circumstances is a general release required by City Publications as a condition of renewal or transfer considered void?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
- ◼ The Rhode Island Franchise Investment Act, R.I. Gen. Law Ch. 395 Sec. 19-28.1-1 through 34 provides that a provision in a Franchise Agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
- ◼ Any general release as a condition of renewal or transfer will be void with respect to claims under the Rhode Island Franchise Investment Act.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, a general release required as a condition of renewal or transfer is considered void under specific circumstances, particularly concerning certain state laws.
For franchisees in Rhode Island, any general release required as a condition of renewal or transfer will be void with respect to claims arising under the Rhode Island Franchise Investment Act. This means that City Publications cannot enforce a general release that prevents a franchisee from pursuing claims related to franchise investments under Rhode Island law.
In California, while a general release is required for renewal and transfer, it must exclude claims arising under the California Franchise Investment Law and the California Franchise Relations Act. Similarly, in Maryland, such a release must exclude claims arising under the Maryland Franchise Registration and Disclosure Law. These stipulations ensure that franchisees in these states retain their rights to pursue legal claims related to their franchise agreements, regardless of any general release they may have signed. Prospective franchisees should consult with legal counsel to fully understand their rights and obligations under these state-specific amendments.