What obligations are the owners of a City Publications franchise personally guaranteeing?

According to City Publications' 2025 Franchise Disclosure Document, all holders of a legal or beneficial interest of 5% or greater in the franchisee are required to execute a Guaranty and Assumption of Obligations, which is attached as Exhibit B to the Franchise Agreement. This means that individuals with a significant ownership stake in the franchise must personally guarantee the franchisee's obligations under the Franchise Agreement.

This requirement is a common practice in franchising, as it provides the franchisor with additional security and recourse in case the franchisee fails to meet its obligations. By requiring a personal guarantee, City Publications ensures that individuals with a vested interest in the franchise's success are personally liable for its performance. This can include financial obligations, adherence to brand standards, and compliance with the terms of the Franchise Agreement.

Prospective City Publications franchisees should carefully review Exhibit B, the Guaranty and Assumption of Obligations, to fully understand the scope of the personal guarantee. They should also consult with an attorney or financial advisor to assess the potential risks and liabilities associated with providing such a guarantee. It is important to note that the specific terms of the guarantee may vary, so franchisees should pay close attention to the details outlined in the agreement.