edge_case

What happens if I fail to pay the City Publications initial franchise fee on time?

City_Publications Franchise · 2025 FDD

Answer from 2025 FDD Document

ons as Franchisor deems appropriate; and

    1. To engage in any activities not expressly forbidden by this Agreement.

SECTION 4. FEES

Franchisee agrees to pay Franchisor the following fees and amounts at the times specified herein:

A. Franchise Fee

Franchisee shall pay a Franchise Fee to Franchisor of ___________________________________ Dollars ($_________). The fee is fully due and payable when you sign this Franchise Agreement. See Exhibit C for any applicable state law affecting the due date of the Franchise Fee. The Franchise Fee shall be deemed fully earned upon payment and is nonrefundable. Said Franchise Fee includes payment for:

    1. Access to Franchisor's proprietary materials and process including, but not limited to, an initial supply of sales material;
    1. Use of a unique domain for design and creation of a designated website for the Franchised Business, and a link between such website and the CITY PUBLICATIONS website. This domain is also for all email communication related to the franchise;
    1. Exclusive rights to distribute Card Packs and other approved products within the Exclusive Territory as described in Section 3.B;
    1. The CITY PUBLICATIONS "Quick Start Program," which program consists of information, activities and materials designed to assist Franchisee in commencing operation of the Franchised Business. The Quick Start Program is provided to Franchisee upon execution of this Agreement and Franchisee's payment of the Franchise Fee;
    1. An initial training program and training materials to be provided to Franchisee pursuant to Section 10.A;
    1. On-site sales training and assistance as further described in Section 10.D;
    1. Franchisor's general sales and marketing expenses, legal, accounting and other professional fees.
CityPublicationsFDD2025 Franchisee's Initials:

**B.

Source: Item 5 — INITIAL FEES (FDD page 10)

What This Means (2025 FDD)

According to City Publications' 2025 Franchise Disclosure Document, the franchise fee is fully due and payable when you sign the Franchise Agreement. The document specifies that the franchise fee is deemed fully earned upon payment and is nonrefundable. This means that if the franchise fee is not paid at the time of signing the agreement, you would be in default of the agreement.

Item 23 of the FDD discusses the consequences of failing to pay sums owing to City Publications. Specifically, if the franchise is terminated due to any default by the franchisee, the franchisee is liable for all damages, costs, and expenses, including reasonable attorneys' fees and other expenses incurred by City Publications as a result of the default. This could include the unpaid initial franchise fee, as well as any additional costs City Publications incurs as a result of the franchisee's failure to pay.

In practical terms, a prospective City Publications franchisee should ensure they have the funds available to pay the franchise fee at the time of signing the agreement. Failure to do so not only jeopardizes the franchise agreement but also exposes the franchisee to potential legal and financial liabilities. Given that the franchise fee is nonrefundable, it is crucial to be certain of your ability to pay before committing to the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.