What is the deadline for City Publications to exercise its option to purchase the assets of a franchised business after termination or expiration?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall have the right (but not the duty) to be exercised by notice of intent to do so within thirty (30) days after termination or expiration, to purchase for cash, except as provided in this Section 0.0., any or all assets of the Franchised Business containing the Marks, including leasehold improvements, equipment, supplies and other inventory, advertising materials and any other additional items, at Franchisee's cost or fair market value, without accounting for goodwill, whichever is less. If Franchisor elects to exercise any option to purchase as herein provided, it shall have the right to set off all amounts due from Franchisee under this Agreement, if any, against any payment therefore.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, City Publications has the option, but not the duty, to purchase the assets of a franchised business after termination or expiration of the franchise agreement. To exercise this option, City Publications must provide notice of intent to do so within thirty (30) days after the termination or expiration date.
This means that if a franchisee's agreement ends, either through termination or expiration, City Publications has a limited time frame to decide whether it wants to buy the business's assets. These assets include items like leasehold improvements, equipment, supplies, inventory, and advertising materials that contain City Publications' marks.
If City Publications chooses to purchase the assets, the price will be the franchisee's cost or the fair market value of the assets, whichever is less. City Publications also has the right to offset any amounts owed by the franchisee against the purchase price. This could have significant financial implications for a franchisee depending on the value of the assets and any outstanding debts to City Publications.