What happens if a City Publications franchisee attempts an unauthorized assignment of the franchise?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall relinquish or transfer to Franchisor or its designee, at Franchisor's discretion, the Franchised Business telephone number and notify the telephone service provider and all listing agencies of the termination or expiration of Franchisee's rights to use any telephone number or any telephone directory listings associated with the "CITY PUBLICATIONS" name or any of the Marks and shall authorize transfer of the same to Franchisor or at Franchisor's direction.
Franchisor shall have the right to enter any premises leased for the Franchised Business.
Additionally, upon demand by Franchisor, Franchisee shall assign (or, if an assignment is prohibited, sublease for the full remaining term and on the same terms and conditions as Franchisee's lease) its interest in the lease then in effect for the premises of the Franchised Business to Franchisor, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement.
Franchisor shall have the right to make rental and other payments directly to the landlord or other party to whom such payment is ultimately due.
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)
Based on the 2025 City Publications Franchise Disclosure Document, the document does not explicitly state what happens in the event of an unauthorized assignment of the franchise. However, the FDD does state what a franchisee needs to do upon termination or expiration of the franchise agreement. Specifically, the franchisee must relinquish the franchised business telephone number to City Publications. The franchisee must also assign their interest in the lease for the premises of the franchised business to City Publications.
Additionally, the City Publications Franchise Agreement outlines restrictions during the term of the agreement and after termination. During the agreement, franchisees cannot engage in competitive business activities or hire employees from City Publications or other franchisees. After termination, these restrictions continue for a period of two years.
Given the lack of specific information about unauthorized assignments, it is important for a prospective City Publications franchisee to seek clarification from the franchisor regarding the consequences of such actions. Understanding the franchisor's policies on unauthorized assignments is crucial for making an informed decision about investing in a City Publications franchise.