Is City Publications obligated to purchase the assets of a franchised business upon termination or expiration of the City Publications franchise agreement?
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)
According to City Publications' 2025 Franchise Disclosure Document, the document does not state that City Publications is obligated to purchase the assets of a franchised business upon termination or expiration of the franchise agreement. However, upon termination or expiration of the City Publications franchise agreement, the franchisee has several obligations. The franchisee must discontinue using any assumed name or registration containing "CITY PUBLICATIONS" or any of its Marks. The franchisee is also required to transfer the franchised business telephone number to City Publications.
Additionally, City Publications has the right to enter any premises leased for the franchised business. Upon demand by City Publications, the franchisee must assign their interest in the lease to City Publications, or sublease if assignment is prohibited. City Publications has the right to make rental payments directly to the landlord. The franchisee is responsible for paying all sums owed to City Publications, including damages, costs, and attorney's fees in the event of termination due to the franchisee's default.
Furthermore, the franchisee must pay all damages, costs, and expenses incurred by City Publications in enforcing the provisions of Section 19 of the agreement after termination or expiration. These post-termination obligations highlight the importance of understanding the terms of the franchise agreement and the potential financial responsibilities that continue even after the franchise relationship ends. A prospective franchisee should consult with legal counsel to fully understand these obligations and their implications.