If a City Publications franchisee is convicted of a felony, can the franchisor terminate the agreement?

According to City Publications' 2025 Franchise Disclosure Document, City Publications has the option to terminate the franchise agreement without notice if a franchisee is convicted of a felony. This also applies if the franchisee pleads no contest to a felony or any other crime or offense that could negatively impact the reputation of City Publications, the franchisee, or the franchised business.

This provision gives City Publications a significant degree of control over who operates its franchises and protects the brand's image. A felony conviction can severely damage a business's reputation, and this clause allows City Publications to act swiftly to mitigate potential harm.

For a prospective franchisee, this means that maintaining a clean criminal record is essential not only for initial approval but also for the duration of the franchise agreement. Any conviction or plea of no contest to a felony could result in the termination of the franchise, representing a substantial financial loss for the franchisee due to the loss of their business. Franchisees should be aware of this clause and understand the importance of avoiding any actions that could lead to a felony conviction.

It is fairly common in the franchise industry for franchisors to include clauses that allow for termination in the event of a franchisee's criminal conviction, particularly for felonies or crimes that could damage the brand's reputation. This is seen as a necessary measure to protect the overall integrity and goodwill of the franchise system.