What is the City Publications franchisee's obligation regarding outstanding debts related to the franchised business before transferring the franchise?
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.
Franchisee shall pay to Franchisor all damages, costs and expenses, including reasonable attorneys' fees, incurred by Franchisor subsequent to the termination or expiration of the Franchise herein granted in obtaining injunctive or other relief for the enforcement of any provisions of this Section 19.
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. If the franchise agreement is terminated due to the franchisee's default, the franchisee is responsible for all damages, costs, and expenses, including reasonable attorney's fees, incurred by City Publications as a result of the default.
Additionally, the franchisee is obligated to pay City Publications for all damages, costs, and expenses, including reasonable attorney's fees, that City Publications incurs after the termination or expiration of the franchise in order to enforce any provisions outlined in Section 19 of the franchise agreement. This means that if City Publications has to take legal action to ensure the franchisee complies with the terms of the agreement after termination, the franchisee will be responsible for those costs as well.
These stipulations ensure that City Publications is protected financially in the event of a franchisee's default or failure to comply with the franchise agreement terms, even after the agreement has ended. A prospective franchisee should carefully consider these financial responsibilities and ensure they have the resources to meet these obligations if they arise.