Does the City Publications franchise agreement confer any goodwill in the Marks to the franchisee?

Based on the 2025 City Publications Franchise Disclosure Document, the franchise agreement does not grant the franchisee any goodwill in the City Publications Marks. Upon termination or expiration of the franchise agreement, the franchisee must relinquish any rights to the Marks and associated phone numbers. Specifically, the franchisee must discontinue using the City Publications name or any of the Marks in any assumed name or equivalent registration filed with state, city, or county authorities and provide evidence of compliance to City Publications within 30 days of termination or expiration. The franchisee must also transfer the franchised business telephone number to City Publications. These stipulations ensure that all goodwill associated with the City Publications brand remains with the franchisor.

This is a standard practice in franchising. The franchisor owns the trademarks and brand identity, and the franchisee is only permitted to use them during the term of the franchise agreement. This allows City Publications to maintain uniformity and protect its brand reputation across all franchise locations.

For a prospective franchisee, this means that any goodwill built up during the franchise term through their efforts reverts back to City Publications upon termination or expiration of the agreement. This highlights the importance of understanding the terms of the franchise agreement and the potential implications for the franchisee's investment and efforts in building the business. It is important to note that the franchisee is building value for the City Publications brand, not for themselves as an independent entity.