Must a City Publications franchisee make reasonable expenditures to modify the Marks?

According to City Publications' 2025 Franchise Disclosure Document, if the franchisor deems it advisable to modify or discontinue the use of any of its Marks, the franchisee must comply with the franchisor's directions within a reasonable time after receiving notice. However, City Publications is not required to reimburse the franchisee for any expenses incurred in modifying or discontinuing the use of a Mark. This includes any loss of goodwill associated with the modified or discontinued Mark, or any expenditures made by the franchisee to promote a modified or substitute trademark or service mark.

This means that as a City Publications franchisee, you bear the financial risk should the franchisor decide to rebrand or change its Marks. You would be responsible for covering all costs associated with updating signage, marketing materials, and any other items bearing the old Marks. This could potentially involve significant unforeseen expenses.

Franchisors commonly retain the right to modify their trademarks and branding. However, it is less common for the franchisee to bear the full financial burden of such changes. Prospective franchisees should carefully consider this potential cost and factor it into their financial planning. It would be prudent to discuss with City Publications what circumstances might trigger a modification of the Marks and to get an understanding of the potential costs involved.