Under what circumstances is City Publications not liable to the franchisee for damages?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
If it becomes advisable at any time, in Franchisor's sole discretion, for Franchisor and/or Franchisee to modify or discontinue use of any of the Marks, and/or use one (1) or more additional or substitute trade names, trademarks, service marks or other commercial symbols, Franchisee shall comply with Franchisor's directions within a reasonable time after notice to Franchisee by Franchisor. 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)
Based on the 2025 Franchise Disclosure Document, City Publications outlines circumstances where they are not required to reimburse franchisees for expenses or losses related to modifications or discontinuance of trademarks. Specifically, if City Publications decides to modify or discontinue the use of any of its Marks, or use additional or substitute trade names, trademarks, service marks, or other commercial symbols, the franchisee must comply with City Publications' directions.
City Publications is not obligated to reimburse the franchisee for any expenses incurred in modifying or discontinuing the use of a Mark. This includes any loss of goodwill associated with the modified or discontinued Mark. Additionally, City Publications will not cover any expenditures made by the franchisee to promote a modified or substitute trademark or service mark.
This policy means that franchisees bear the financial risk associated with changes to the brand's trademarks or service marks. Franchisees need to be aware that they may incur costs to update their marketing materials and business signage to reflect the new branding without any financial assistance from City Publications. This could potentially impact their profitability, especially if the changes occur frequently or require significant investment.