In Michigan, what are the conditions under which City Publications can require the franchisee to resell items to City Publications?
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.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
Based on the 2025 City Publications Franchise Disclosure Document excerpts, there is no specific mention of conditions under which City Publications can require a franchisee in Michigan to resell items back to the company. However, the document does outline general termination procedures and obligations. Specifically, upon termination or expiration of the franchise agreement, the franchisee is required to relinquish the franchised business telephone number and transfer it to City Publications. Additionally, if City Publications demands it, the franchisee must assign their interest in the lease for the business premises to City Publications. These obligations are triggered by the termination or expiration of the franchise agreement, not necessarily a direct resale of items.
Given the absence of specific details regarding mandatory resales in Michigan, it is important for prospective franchisees to seek clarification from City Publications regarding any potential scenarios where they might be required to resell items or inventory back to the company. Understanding these conditions is crucial for assessing the potential financial implications and obligations associated with the franchise.
A potential franchisee should ask City Publications about policies regarding inventory, supplies, or other items a franchisee may have at the end of the franchise term. Clarification on whether City Publications has the option or obligation to repurchase these items, and at what price, would be beneficial. This information would help a franchisee understand their potential financial exposure upon exiting the franchise system.