Does the Virginia amendment for City Publications alter the franchisee's obligation to adhere to all other terms of the Franchise Agreement besides Section 18B.1.h?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE STATE OF VIRGINIA
This Amendment to the Franchise Agreement is agreed to this day of, 20, between CITY PUBLICATIONS FRANCHISE GROUP, INC. and to amend and revise said Franchise Agreement as follows: ◼ Section 18B.1.h of the Franchise Agreement which terminates the Franchise Agreement upon the bankruptcy of the Franchisee may not be enforceable under federal bankruptcy law (11 U.S.C.
Section 101, et seq.).
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.:
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, the amendment for Virginia addresses the enforceability of Section 18B.1.h of the Franchise Agreement, particularly concerning franchisee bankruptcy. The amendment states that this section, which terminates the Franchise Agreement upon the franchisee's bankruptcy, may not be enforceable under federal bankruptcy law.
However, the amendment does not explicitly state that it alters the franchisee's obligation to adhere to all other terms of the Franchise Agreement. The language focuses specifically on the potential unenforceability of the bankruptcy clause under federal law. This suggests that while this particular clause may be subject to federal bankruptcy regulations, all other terms and conditions of the Franchise Agreement remain in full effect.
In practical terms, a City Publications franchisee in Virginia should be aware that the bankruptcy clause in their agreement might not be strictly enforced due to federal law. However, they must still comply with all other provisions of the Franchise Agreement. It is advisable for prospective franchisees to seek legal counsel to fully understand the implications of federal bankruptcy law on their franchise agreement and to ensure they are aware of all their obligations and rights under the agreement.