In the event of death or incapacity of a City Publications franchisee, who is responsible for transferring the interest in the agreement?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the death or incapacity of any person with an interest in this Agreement as determined by a court of competent jurisdiction, the executor, administrator, or personal representative of such person's estate shall transfer its interest to a third party approved by Franchisor within six (6) months after such death or incapacity. Such transfers, including, without limitation, transfers by devise or inheritance, shall be subject to the same conditions as set forth in Section 20.0. hereof. However, in the case of transfer by devise or inheritance, if the heirs or beneficiaries of any such person are unable to meet the conditions in this Section 20., the personal representative of the deceased franchisee shall have six (6) months in which to dispose of the deceased's interest in the Franchise, which disposition shall be subject to all the terms and conditions for transfers contained in this Agreement. If the interest is not disposed of within such six (6) month period, Franchisor may terminate this Agreement. The above notwithstanding, Franchisee or its authorized representative shall identify to Franchisor for approval a Designated Manager within thirty (30) days of death or incapacity.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, in the event of the death or incapacity of a franchisee, the responsibility for transferring the franchise interest falls to the executor, administrator, or personal representative of the deceased or incapacitated person's estate. This representative is required to transfer the interest to a third party that City Publications approves.
The FDD stipulates that this transfer must occur within six months of the death or incapacity. The transfer is subject to the same conditions outlined in Section 20.0 of the agreement, which likely covers standard transfer procedures and qualifications. If the transfer occurs through inheritance and the heirs cannot meet the conditions in Section 20, the personal representative still has six months to dispose of the franchise interest, adhering to all transfer terms in the agreement.
If the interest is not transferred within the specified six-month period, City Publications retains the right to terminate the franchise agreement. Additionally, within 30 days of the death or incapacity, the franchisee or their representative must identify a Designated Manager for approval by City Publications. This ensures operational continuity during the transfer process. This clause protects City Publications by ensuring that transfers are handled promptly and in accordance with their standards, while also providing a limited time frame for the franchisee's estate to manage the transfer.