What conditions must be met for City Publications to approve a transfer of the franchise by the franchisee?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
unfinished order, turn over any prepayments for |
| Provision | Section In franchise or other agreement | Summary | |
|---|---|---|---|
| unfinished orders, and comply with the covenants not to compete and any other surviving provision. | |||
| j. | Assignment of contract by us | Section 20.A | There are no restrictions on our right to assign except that the assignee must be financially responsible and economically capable of performing the obligations contained in the Franchise Agreement. |
| k. | "Transfer" by you-definition | Section 20.B | Includes transfer of Franchise Agreement, ownership of franchisee entity or sale of assets. |
| l. | Our approval of transfer by you | Section 20.B | No transfer without our prior written consent. |
| m. | Conditions for our approval of transfer | Sections 20.B.1-20.B.11 | All obligations owed to us must be paid; execution of a general release by you and the transferee; the transferee must meet our qualifications; sign the current Franchise Agreement; provide us with all contracts and agreements relating to the transfer; pay a transfer fee of $25,000; transferee must obtain all required consents and approvals; transferee must satisfactorily complete the training program; and you and your owners execute a new non-competition agreement. In addition, the buyer must agree to devote full time efforts to the business of at least 40 hour |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 26–31)
What This Means (2025 FDD)
According to City Publications's 2025 Franchise Disclosure Document, a franchisee needs to meet several conditions to get approval for a franchise transfer. City Publications requires prior written consent before any transfer can occur.
The conditions for approval include ensuring that all obligations owed to City Publications are paid in full. Both the franchisee and the transferee must execute a general release, and the transferee must meet City Publications's qualifications to become a franchisee. The transferee is required to sign the current Franchise Agreement and provide all contracts and agreements related to the transfer to City Publications. A transfer fee of $25,000 must be paid to City Publications.
Furthermore, the transferee must obtain all necessary consents and approvals and satisfactorily complete the training program provided by City Publications. Both the franchisee and their owners are required to execute a new non-competition agreement. Finally, the buyer must commit to devoting full-time efforts to the business, working at least 40 hours per week, and must not have any other business activities.
These stipulations ensure that any new franchisee is fully qualified, trained, and committed to the City Publications system, while also protecting City Publications's interests through financial obligations, legal releases, and non-competition agreements.