Does the City Publications agreement confer rights to any third party?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee establishes a commercial business location, any lease for the location must contain a provision entitling Franchisor, or its nominee, to assume such lease upon Franchisee's default of said lease.
Franchisor makes no warranties or guarantees upon which Franchisee may rely and assumes no liability or obligation to Franchisee or any third party to which it would not otherwise be subject, by providing any waiver, approval, advice, consent or services to Franchisee in connection with this Agreement, or by reason of any neglect, delay or denial of any request therefore.
All holders of a legal or beneficial interest in Franchisee of five percent (5%) or greater shall be required to execute the Guaranty and Assumption of Obligations attached hereto as Exhibit B and incorporated herein by reference.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the franchise agreement addresses third-party rights in several ways. Specifically, if a franchisee establishes a commercial business location, the lease must include a provision that allows City Publications, or its nominee, to assume the lease if the franchisee defaults. This ensures City Publications can maintain control over the location and continue operations if necessary.
Additionally, the FDD states that City Publications assumes no liability or obligation to any third party to which it would not otherwise be subject, by providing any waiver, approval, advice, consent or services to the franchisee in connection with the agreement, or by reason of any neglect, delay or denial of any request therefore. This clause protects City Publications from being held responsible for actions or decisions made by the franchisee that might affect third parties.
Furthermore, all individuals holding a legal or beneficial interest of five percent or greater in the franchisee are required to execute a Guaranty and Assumption of Obligations. This means that these individuals are legally bound to uphold the franchisee's obligations under the agreement, providing an additional layer of security for City Publications. These measures ensure that City Publications retains certain rights and protections regarding the franchise operation and its relationship with both the franchisee and relevant third parties.