Under what circumstances does City Publications have the option to purchase the assets of a franchised business?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee establishes a commercial business location, any lease for the location must contain a provision entitling Franchisor, or its nominee, to assume such lease upon Franchisee's default of said lease.
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.
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.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
Based on the 2025 City Publications Franchise Disclosure Document, there are specific circumstances related to the lease of the business premises where City Publications may become involved. If a franchisee establishes a commercial business location, the lease must include a provision that allows City Publications, or its designated representative, to assume the lease if the franchisee defaults. This ensures that City Publications has the option to maintain control over the location of the franchised business in case of the franchisee's failure to meet lease obligations.
Additionally, upon termination or expiration of the franchise agreement, City Publications has certain rights regarding the franchised business's assets. The franchisee is required to relinquish or transfer the franchised business telephone number to City Publications or its designee. The franchisee must also notify the telephone service provider and listing agencies about the termination or expiration of their rights to use any telephone number or directory listings associated with the City Publications name or marks, authorizing the transfer to City Publications.
Furthermore, City Publications retains the right to enter any premises leased for the franchised business. Upon demand, the franchisee must assign their interest in the lease to City Publications, or if assignment is prohibited, sublease the premises for the full remaining term under the same conditions. This ensures City Publications can maintain control over the business location even after the franchise agreement ends. City Publications also has the right to make rental and other payments directly to the landlord or other relevant party.