Does the City Publications FDD specify any exceptions to the requirement that franchisee-developed improvements become the property of the franchisor?

According to City Publications' 2025 Franchise Disclosure Document, all ideas, concepts, techniques, or materials concerning the franchised business, whether or not they are protectable intellectual property, and whether created by or for the franchisee or its owners or employees, must be promptly disclosed to City Publications. These will be deemed the sole and exclusive property of City Publications, may be made part of the City Publications system, and will be considered works made-for-hire for City Publications. No compensation will be due to the franchisee or its owners or employees for these improvements.

To the extent that any item does not qualify as a "work made-for-hire" for City Publications, the franchisee must assign ownership of that item, and all related rights to that item, to City Publications. The franchisee must sign whatever assignment or other documents City Publications requests to show its ownership or to assist City Publications in obtaining intellectual property rights in the item. City Publications agrees to disclose to the franchisee ideas, concepts, techniques, or materials developed by other franchisees which are made a part of the system.

This clause means that any innovation or improvement a franchisee develops for their City Publications business automatically becomes the property of the franchisor. This is a fairly standard practice in franchising, as it allows the franchisor to maintain uniformity and control over the brand and system. However, it also means that franchisees do not directly benefit financially from their own innovations, as they are not entitled to compensation and must sign over all rights to City Publications. Franchisees benefit indirectly from improvements to the City Publications system.