When are provisions requiring franchisees to waive exemplary damages void for City Wide?

According to City Wide's 2025 Franchise Disclosure Document, any provision that requires a person acquiring a City Wide franchise to waive compliance with California Corporations Code Section 31512, or any related rule or order, is void. This code addresses franchise agreements and the rights of franchisees within California.

This means that if a City Wide franchise agreement contains language that forces a franchisee to give up their rights under California franchise law, that specific part of the agreement is not legally enforceable in California. This protection ensures that franchisees in California retain the legal rights and protections afforded to them under state law, regardless of what the franchise agreement might otherwise state.

This safeguard is particularly important for prospective City Wide franchisees in California, as it prevents the franchisor from imposing terms that could undermine their legal standing or ability to seek remedies for grievances. Franchisees should be aware of this protection and consult with legal counsel to fully understand their rights under California law and how they interact with the franchise agreement.