What is a City Publications franchisee's obligation regarding the franchisor's directions in responding to a trademark dispute?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
If it becomes advisable at any time, in Franchisor's sole discretion, for Franchisor and/or Franchisee to modify or discontinue use of any of the Marks, and/or use one (1) or more additional or substitute trade names, trademarks, service marks or other commercial symbols, Franchisee shall comply with Franchisor's directions within a reasonable time after notice to Franchisee by Franchisor. Franchisor shall not be required to reimburse Franchisee for its expenses in modifying or discontinuing the use of a Mark or any loss of goodwill associated with any modified or discontinued Mark or for any expenditures made by Franchisee to promote a modified or substitute trademark or service mark.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, if City Publications deems it advisable to modify or discontinue the use of any of its marks, or to use additional or substitute trademarks, the franchisee must comply with City Publications' directions within a reasonable time after receiving notice. This decision is at City Publications' sole discretion.
This means that a City Publications franchisee must be prepared to change branding elements if directed by the franchisor. This could involve updating marketing materials, signage, or other branded items to reflect the new marks. The franchisee is obligated to make these changes within a reasonable timeframe after being notified by City Publications.
It is important to note that City Publications is not required to reimburse the franchisee for any expenses incurred in modifying or discontinuing the use of a mark. This includes costs associated with updating materials, as well as any loss of goodwill associated with the modified or discontinued mark. Additionally, City Publications will not cover any expenditures made by the franchisee to promote a modified or substitute trademark or service mark. This lack of reimbursement is a notable risk for franchisees, as rebranding can be costly.