If the City Publications franchisee subleases their interest in the lease, must it be for the full remaining term?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, if the franchisee's lease prohibits assignment, the franchisee must sublease the property for the full remaining term, with the same terms and conditions as the original lease. This requirement is triggered if the franchisor demands the franchisee's interest in the lease.
This condition is put in place to ensure that City Publications can maintain control over the business location if they deem it necessary, particularly upon termination or expiration of the franchise agreement. By requiring a sublease for the full remaining term, City Publications ensures continuity and minimizes disruption to the business operations at that location.
For a prospective City Publications franchisee, this means that if you choose to establish a commercial business location and the lease does not allow for assignment to the franchisor, you must be prepared to sublease the property to City Publications for the entire remaining duration of the lease under the original terms if they request it. This could have implications for your flexibility and potential liabilities related to the property after the franchise agreement ends.