How does City Publications exercise its right to purchase the ownership interests or assets from the franchisee?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall, for thirty (30) days from the date of delivery of all such documents, have the right, exercisable by written notice to Franchisee, to purchase the ownership interests or assets for the price and on the same terms and conditions contained in such offer or proposal to Franchisee. Franchisor may substitute cash for the fair
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 right to purchase the ownership interests or assets of a franchisee. To exercise this right, City Publications has 30 days from the date it receives all necessary documents to notify the franchisee in writing of its intent to purchase.
The purchase will be for the price and under the same terms and conditions as any offer or proposal the franchisee has received. This means City Publications can match an existing offer the franchisee has from a third party to buy the business.
City Publications also has the option to substitute cash for the fair market value of other forms of consideration proposed in the offer. This provides City Publications with flexibility in structuring the purchase. This right allows City Publications to control who becomes a new franchisee or to consolidate ownership if it deems necessary.