What happens to copyrighted or proprietary materials related to the Franchised Business upon termination of a City Publications franchise?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
esult of the default.
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- 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.
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- Franchisee shall immediately turn over to Franchisor the Manual, all Confidential Information, all copyrighted or proprietary materials, all customer lists and other intangible assets related to the Franchised Business, and all other records, files, instructions, brochures, agreements, disclosure statements and any other materials provided by Franchisor to Franchisee relating to the operation of the Franchised Business (all of which are acknowledged to be Franchisor's property).
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- Franchisee shall comply with the covenants contained in Section 17. of this Agreement.
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- Franchisor shall have the right, at its discretion, to complete and deliver any unfinished orders of the Franchised Business at the time of termination. Franchisee will immediately, upon Franchisor's request, turn over to Franchisor all materials necessary for Franchisor's exercise of its right to complete and deliver said orders in a timely manner. Franchisor will be entitled to any amounts prepaid or receivable for such orders.
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- Upon termination, cancellation or expiration of this Agreement, Franchisee shall cease to use all related websites, social media
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, upon termination of the franchise agreement, the franchisee must immediately turn over several items to City Publications. These include the operations manual, all confidential information, all copyrighted or proprietary materials, customer lists, and other intangible assets related to the franchised business. The franchisee must also relinquish all other records, files, instructions, brochures, agreements, disclosure statements, and any other materials provided by City Publications relating to the operation of the franchised business. All of these items are acknowledged to be the property of City Publications.
Additionally, the franchisee must comply with the covenants outlined in Section 17 of the agreement, which likely pertain to post-termination obligations and restrictions. The franchisee is also required to cease using all related websites, social media accounts, digital marketing, and other branding assets associated with the franchise upon termination, cancellation, or expiration of the agreement. Full access and ownership of all related accounts and materials must be transferred to City Publications.
Failure to transfer the websites, social media accounts, digital marketing, and other branding assets will result in a penalty. The franchisee will pay City Publications $1000 per month until the issue is resolved, which is considered liquidated damages for the breach of the agreement. This provision underscores the importance of adhering to the post-termination requirements to avoid financial penalties and legal repercussions.