If a City Publications franchisee dies or becomes disabled, can their heirs continue the franchise?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| p. | Your death or disability | Section 20.F | Your heirs, beneficiaries, devisees or legal representative can apply to us to continue operation of the Franchised Business, or sell or otherwise transfer your interest in the Franchised Business to a suitable third party | | | Provision | Section In franchise or other agreement | Summary | |----|------------------------------------------------------------------------------------------------|--------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | within | | | | | 6 | | | | | months | | | | | of | | | | | death | | | | | or | | | | | incapacity. If | | | | | they | | | | | fail | | | | | to | | | | | do | | | | | so | | | | | within | | | | | 6 | | | | | months, | | | | | the | | | | | Franchise | | | | | Agreement | | | | | will | | | | | terminate | | | | | and | | | | | we | | | | | will | | | | | have | | | | | the | | | | | option | | | | | to | | | | | buy | | | | | assets. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 26–31)
What This Means (2025 FDD)
According to City Publications's 2025 Franchise Disclosure Document, in the event of a franchisee's death or disability, their heirs, beneficiaries, devisees, or legal representatives have the option to apply to City Publications to continue operating the franchised business. Alternatively, they can choose to sell or transfer the franchisee's interest in the business to a third party deemed suitable by City Publications.
However, this option is time-sensitive. The franchisee's heirs or representatives must act within six months of the death or incapacitation. If they fail to apply for continuation or transfer within this timeframe, the Franchise Agreement will terminate automatically. Following termination, City Publications retains the option, but not the obligation, to purchase the assets of the franchised business.
This clause provides a degree of flexibility for the franchisee's family, allowing them to potentially continue the business or recoup some value through a sale. However, the six-month deadline is a critical factor. Franchisees should ensure their estate plans account for this provision to allow their heirs sufficient time to make informed decisions and navigate the application or transfer process with City Publications. The franchisor's approval of a potential buyer is also a condition that must be met for the transfer to occur.