What must be conspicuously endorsed on each stock certificate or ownership interest certificate of the Controlled Entity in a City Publications franchise transfer?

According to City Publications' 2025 Franchise Disclosure Document, each stock certificate or ownership interest certificate of the Controlled Entity must have a conspicuous endorsement. This endorsement, in a form satisfactory to City Publications, should state that the certificate is held subject to all transfer restrictions imposed by the Franchise Agreement. Furthermore, it must state that any further assignment or transfer is also subject to these restrictions.

This requirement ensures that any potential future owners are fully aware of the limitations and obligations associated with the franchise. By having this statement directly on the stock certificate, City Publications aims to prevent unauthorized transfers and maintain control over who becomes a franchisee. This protects the integrity of the City Publications brand and system.

For a prospective franchisee, this means that if they plan to operate their City Publications franchise through a corporation or other entity, the ownership documents of that entity must clearly reflect the transfer restrictions outlined in the franchise agreement. This is a standard practice in franchising, designed to protect the franchisor's interests and ensure consistent brand standards across all franchise locations.