What is the consequence if a City Publications franchisee fails to pay royalties when due?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
ment is instituted against Franchisee and
not dismissed within thirty (30) days or is not in the process of being dismissed;
- i. Materially misuses or makes an unauthorized use of any of the Marks or commits any other act which can reasonably be expected to materially impair the goodwill associated with any of the Marks;
- j. Fails on two (2) or more separate occasions within any period of twelve (12) consecutive months to submit any reports or other information or supporting records when due, to make Royalty Fee payments, or other payments when due to Franchisor and any Affiliate of Franchisor, or otherwise fails to comply with this Agreement, whether or not such failures to comply are corrected after notice thereof is delivered to Franchisee; or
- k. Continues to violate any health or safety law, ordinance or regulation or operates the Franchised Business in a manner that presents a health or safety hazard to its customers or the public.
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Source: Item 12 — TERRITORY (FDD page 24)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, a franchisee's failure to make royalty payments or other payments when due to City Publications or its affiliates can lead to termination of the franchise agreement. Specifically, if a franchisee fails or refuses to make payments for royalties, mailing list rental, graphics services, appointment services, printing brokerage service fees, postage expenses, purchases from City Publications or its affiliates, or any other amounts due, and does not correct this within five days after receiving written notice, City Publications has the option to terminate the agreement.
Furthermore, if a City Publications franchisee fails to submit reports or other information or supporting records when due, or to make royalty fee payments or other payments when due to City Publications and any Affiliate of City Publications on two or more separate occasions within any period of twelve consecutive months, City Publications can terminate the agreement, whether or not such failures to comply are corrected after notice is delivered to the franchisee.
This means that consistent and timely payment of all fees and adherence to reporting requirements are critical for maintaining a City Publications franchise. The short cure period of only five days for non-payment of fees underscores the importance City Publications places on financial obligations. Franchisees should ensure they have systems in place to manage and track payments to avoid potential termination of their franchise agreement.