Does City Publications have the right to complete unfinished orders of the Franchised Business after termination?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall have the right, at its discretion, to complete and deliver any unfinished orders of the Franchised Business at the time of termination.
Franchisee will immediately, upon Franchisor's request, turn over to Franchisor all materials necessary for Franchisor's exercise of its right to complete and deliver said orders in a timely manner.
Franchisor will be entitled to any amounts prepaid or receivable for such orders.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, City Publications has the right to complete and deliver any unfinished orders of the franchised business at the time of termination. If City Publications chooses to exercise this right, the franchisee must turn over all necessary materials to facilitate the completion and delivery of those orders in a timely manner.
City Publications is entitled to any amounts prepaid or receivable for such orders. This means that if customers have already paid for the orders, City Publications will receive those payments. Similarly, if there are outstanding payments to be collected for the orders, City Publications is entitled to receive those receivables.
This clause ensures a smooth transition and protects City Publications' interests by allowing them to fulfill obligations to customers even after a franchise agreement ends. For a prospective franchisee, this means they may need to provide City Publications with all the necessary resources to complete any pending orders at termination. It also clarifies that City Publications, not the franchisee, will receive any payments associated with those completed orders.