How can a City Publications franchisee cure a failure to meet the Annual Minimum Royalty Fee?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
- b.
During any full calendar year after the Execution Date, Franchisee fails to generate the Annual Minimum Royalty Fee required pursuant to Section 14, and does not cure such failure by remitting a cash payment of the difference between the Annual Minimum Royalty Fee for such year and the aggregate of qualifying fees generated during such year to Franchisor within thirty (30) days after written notice of such failure is delivered to Franchisee;
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, a franchisee can cure a failure to meet the Annual Minimum Royalty Fee. If a franchisee fails to generate the required Annual Minimum Royalty Fee during any full calendar year after the Execution Date, they have the option to remedy this.
To cure the deficiency, the franchisee must remit a cash payment to City Publications. This payment should cover the difference between the Annual Minimum Royalty Fee for that year and the total qualifying fees the franchisee actually generated during the year.
The franchisee has a limited time to make this payment. They must remit the payment within thirty (30) days after receiving written notice from City Publications about the failure to meet the Annual Minimum Royalty Fee. Failure to make the payment within this timeframe could result in termination of the franchise agreement.