What is the cure period for a City Publications franchisee who fails to pay for purchases from the franchisor?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee fails or refuses to make payments of any amounts due Franchisor or any Affiliate of Franchisor for Royalty, Mailing List Rental, Graphics Services, Appointment Services and Printing Brokerage Service Fees postage expenses, purchases from Franchisor or any Affiliate of Franchisor, or any other amounts due to Franchisor or any Affiliate of Franchisor, and does not correct such failure or refusal within five (5) days after written notice of such failure is delivered to Franchisee;
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, a franchisee has a five-day cure period to correct a failure or refusal to make payments for purchases from City Publications or its affiliates. This includes payments for royalty fees, mailing list rentals, graphics services, appointment services, printing brokerage service fees, postage expenses, or any other amounts due. The cure period begins after written notice of the failure is delivered to the franchisee.
This short cure period highlights the importance of maintaining good financial standing with City Publications. Failing to remit payments promptly can quickly lead to termination of the franchise agreement if the franchisee does not rectify the situation within the specified timeframe. This could place significant financial strain on the franchisee.
Prospective franchisees should be aware of this strict payment policy and ensure they have sufficient capital and a robust financial management system in place to meet all payment obligations to City Publications on time. Understanding the implications of non-compliance and the swift consequences is crucial for any potential City Publications franchisee.