What is the City Publications franchisee required to do with all outstanding obligations relating to the franchised business before a transfer can occur?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall promptly pay all sums owing to Franchisor.
In the event of termination for any default of Franchisee, such sums shall include, but not be limited to, all damages, costs and expenses, including reasonable attorneys' fees and other expenses incurred by Franchisor as a result of the default.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, a franchisee must promptly pay all sums owed to City Publications before a transfer can occur. If the termination results from any default by the franchisee, these sums include all damages, costs, and expenses, including reasonable attorneys' fees and other expenses incurred by City Publications due to the default.
This requirement ensures that City Publications does not incur financial losses due to a franchisee's failure to meet their financial obligations. It protects City Publications' interests by ensuring all outstanding debts are settled before a transfer is finalized.
Prospective franchisees should be aware of this obligation, as it could significantly impact their ability to transfer the franchise if they have outstanding financial liabilities. Franchisees should maintain accurate financial records and ensure timely payments to avoid potential complications during a transfer.