Is City Publications required to reimburse a franchisee for expenditures made to promote a modified or substitute trademark or service mark?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall not be required to reimburse Franchisee for its expenses in modifying or discontinuing the use of a Mark or any loss of goodwill associated with any modified or discontinued Mark or for any expenditures made by Franchisee to promote a modified or substitute trademark or service mark.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, City Publications is not required to reimburse franchisees for expenses related to modifying or discontinuing the use of a mark. This includes costs associated with promoting a modified or substitute trademark or service mark.
This means that if City Publications decides to change its branding or requires franchisees to use a new trademark, franchisees will be responsible for covering the costs of promoting the new mark. This could include expenses for new signage, marketing materials, and advertising campaigns. Franchisees also bear the loss of goodwill associated with the old mark.
This policy places the financial burden of rebranding on the franchisee rather than City Publications. A prospective franchisee should consider this potential cost when evaluating the franchise opportunity, as rebranding can be a significant expense. It is important to note that City Publications retains sole discretion on modifying or discontinuing the use of any of the marks.