In the event of a City Publications franchise transfer, what must happen with all outstanding obligations related to the franchised business?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall promptly pay all sums owing to Franchisor.
In the event of termination for any default of Franchisee, such sums shall include, but not be limited to, all damages, costs and expenses, including reasonable attorneys' fees and other expenses incurred by Franchisor as a result of the default.
Franchisee shall pay to Franchisor all damages, costs and expenses, including reasonable attorneys' fees, incurred by Franchisor subsequent to the termination or expiration of the Franchise herein granted in obtaining injunctive or other relief for the enforcement of any provisions of this Section 19.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 FDD, a City Publications franchisee must promptly pay all sums owed to the franchisor. If the termination occurs due to the franchisee's default, these sums will include all damages, costs, and expenses, including reasonable attorneys' fees, incurred by City Publications as a result of the default.
Furthermore, the franchisee is responsible for paying all damages, costs, and expenses, including reasonable attorneys' fees, that City Publications incurs after the termination or expiration of the franchise in order to enforce any provisions outlined in Section 19 of the agreement. This includes obtaining injunctive or other relief.
This means that a franchisee looking to transfer their City Publications franchise must ensure all financial obligations are up to date. Failure to do so could result in additional costs, legal fees, and potential legal action from the franchisor to recover outstanding amounts and enforce the terms of the franchise agreement.