Does the City Publications franchise agreement specify who is included when referring to the franchisee?

According to City Publications' 2025 Franchise Disclosure Document, the franchise agreement specifies that all holders of a legal or beneficial interest in the franchisee of five percent or greater must execute a Guaranty and Assumption of Obligations. This means that individuals or entities with a significant financial stake in the franchisee's business are legally bound to uphold the franchisee's obligations under the agreement.

This requirement ensures that City Publications can seek recourse from these interested parties if the franchisee fails to meet its contractual obligations. It also aligns the interests of these stakeholders with the success of the franchise, as they are financially responsible for its performance.

For a prospective franchisee, this means that if their business has multiple owners or investors, those holding a 5% or greater interest will be required to sign a guaranty, making them personally liable for the franchise's debts and obligations. This is a common practice in franchising, as it provides the franchisor with additional security and ensures that those with a significant stake in the business are committed to its success.