For a City Publications franchise, how long can a final judgment remain unsatisfied before it triggers termination?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
if a final judgment remains unsatisfied of record for thirty (30) days or longer (unless supersedeas bond is filed); if execution is levied against the Franchised Business or its property; if suit to foreclose any lien or mortgage against the premises or equipment is instituted against Franchisee and
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, a final judgment against a franchisee that remains unsatisfied for 30 days or longer can trigger termination of the franchise agreement by City Publications. However, this is only the case if a supersedeas bond is not filed.
This provision means that if a court enters a final judgment against a City Publications franchisee, and the franchisee does not pay the judgment within 30 days, City Publications has the option to terminate the franchise agreement. A supersedeas bond is a type of surety bond that a party can obtain to stay the execution of a judgment while an appeal is pending. If the franchisee files a supersedeas bond, it prevents City Publications from terminating the agreement based solely on the unsatisfied judgment during the appeal period.
This clause protects City Publications from franchisees who may be in severe financial distress and unable to meet their financial obligations, which could negatively impact the City Publications brand and reputation. It is a fairly standard clause in franchise agreements, as franchisors need to ensure the financial stability of their franchisees to maintain the overall health of the franchise system. Franchisees should be aware of this provision and take steps to address any judgments against them promptly to avoid potential termination of their franchise agreement.