Is a City Publications franchisee required to execute a general release to renew their franchise agreement?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section In franchise or other agreement | Summary | |
|---|---|---|---|
| unfinished orders, and comply with the covenants not to compete and any other surviving provision. | |||
| j. | Assignment of contract by us | Section 20.A | There are no restrictions on our right to assign except that the assignee must be financially responsible and economically capable of performing the obligations contained in the Franchise Agreement. |
| k. | "Transfer" by you-definition | Section 20.B | Includes transfer of Franchise Agreement, ownership of franchisee entity or sale of assets. |
| l. | Our approval of transfer by you | Section 20.B | No transfer without our prior written consent. |
| m. | Conditions for our approval of transfer | Sections 20.B.1-20.B.11 | All obligations owed to us must be paid; execution of a general release by you and the transferee; the transferee must meet our qualifications; sign the current Franchise Agreement; provide us with all contracts and agreements relating to the transfer; pay a transfer fee of $25,000; transferee must obtain all required consents and approvals; transferee must satisfactorily complete the training program; and you and your owners execute a new non-competition agreement. In addition, the buyer must agree to devote full time efforts to the business of at least 40 hour |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 26–31)
What This Means (2025 FDD)
Based on the 2025 City Publications Franchise Disclosure Document, the document does not state that a franchisee is required to execute a general release to renew their franchise agreement. However, a general release is required when a franchisee transfers their franchise to a new owner.
Specifically, in order to transfer a City Publications franchise, the franchisee and the transferee must execute a general release. The transferee must also meet City Publications' qualifications, sign the current Franchise Agreement, provide all contracts related to the transfer, pay a $25,000 transfer fee, obtain all necessary consents and approvals, and complete the training program. Furthermore, both the franchisee and their owners must sign a new non-competition agreement. The buyer must also agree to devote full-time efforts of at least 40 hours per week to the business and have no other business activities.
It is important to note that the FDD outlines several conditions related to franchise transfers, including the execution of a general release. However, the FDD does not explicitly state whether a general release is required for franchise renewal. A prospective franchisee should clarify the renewal requirements, including any potential need for a general release, with City Publications prior to investing.