Which section of the City Publications agreement contains covenants that the franchisee must comply with upon termination?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
all immediately and permanently cease to use any Confidential Information, the System, the Marks and any distinctive forms, slogans, signs, symbols, logos or devices associated with the Marks or System. In particular, Franchisee shall cease to use, without limitation, all signs, advertising materials, stationery, forms or data.
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- Franchisee shall take such action as may be necessary to cancel or assign to Franchisor, at Franchisor's option,
any assumed name or equivalent registration filed with state, city or county authorities which contains the name "CITY PUBLICATIONS" or any of the Marks, 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.
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- 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.
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- 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.
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- 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.
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- 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.
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- Franchisee shall immediately turn over to Franchisor the Manual, all Confidential Information, all copyrighted or proprietary materials, all customer lists and other intangible assets related to the Franchised Business, and all other records, files, instructions, brochures, agreements, disclosure statements and any other materials provided by Franchisor to Franchisee relating to the operation of the Franchised Business (all of which are acknowledged to be Franchisor's property).
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Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, Section 19 outlines the franchisee's obligations upon termination or expiration of the franchise agreement. This section details several key requirements that a franchisee must adhere to once the agreement concludes. These stipulations cover the handling of intellectual property, business assets, and outstanding financial obligations.
Specifically, Section 19 mandates that the franchisee must cease using the City Publications name and trademarks, transfer the business telephone number to the franchisor, and potentially assign the lease for the business premises to the franchisor. Additionally, the franchisee is responsible for settling any outstanding payments owed to City Publications, including damages, costs, and attorney's fees resulting from any default.
Furthermore, Section 19 emphasizes that City Publications has the right to seek injunctive or other relief to enforce these post-termination covenants. The franchisee is liable for all damages, costs, and attorney's fees incurred by City Publications in pursuing such enforcement. This comprehensive set of obligations ensures that upon termination, the franchisee takes specific steps to protect City Publications' interests and maintain the integrity of the franchise system.