What is the significance of Exhibit J in the City Wide Franchise Disclosure Document?

According to City Wide's 2025 Franchise Disclosure Document, Exhibit J serves as the State Effective Dates & Receipt. The receipt confirms that the prospective franchisee received the FDD. It also lists the states that have franchise laws requiring the Franchise Disclosure Document to be registered or filed with the state, or be exempt from registration, which includes California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. This ensures City Wide is compliant with state franchise laws.

City Wide must provide the disclosure document to the prospective franchisee 14 calendar days before they sign a binding agreement or make a payment. In certain states like Illinois, Iowa, Maine, Nebraska, Oklahoma, Rhode Island, and South Dakota, the FDD must be provided at the first personal meeting. New York requires it at the earlier of the first personal meeting or 10 business days before signing any agreement or making a payment.

The receipt included in Exhibit J must be signed, dated, and delivered back to City Wide. A copy of the receipt is also included in Exhibit J for the franchisee's records. This signed receipt serves as proof that City Wide provided the FDD within the legally required timeframe, protecting both the franchisee and City Wide.

If City Wide does not deliver the Franchise Disclosure Document on time, or if it contains false or misleading information, or omits material information, it could be a violation of federal and state law. This should be reported to the Federal Trade Commission and the State Administrator listed in Exhibit E. Therefore, Exhibit J and the associated receipt are crucial for legal compliance and transparency in the franchise sales process.