Under what conditions can City Publications assign its contract?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section In franchise or other agreement | Summary | |
|---|---|---|---|
| unfinished orders, and comply with the covenants not to compete and any other surviving provision. | |||
| j. | Assignment of contract by us | Section 20.A | There are no restrictions on our right to assign except that the assignee must be financially responsible and economically capable of performing the obligations contained in the Franchise Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 26–31)
What This Means (2025 FDD)
According to City Publications's 2025 Franchise Disclosure Document, City Publications has the right to assign its franchise agreement with franchisees. The FDD states that there are no restrictions on City Publications's right to assign the agreement, provided that the assignee is financially responsible and economically capable of fulfilling the obligations outlined in the Franchise Agreement.
This means that City Publications can transfer its rights and responsibilities under the franchise agreement to another party without needing the franchisee's consent. However, the new party must demonstrate the financial stability and economic resources to uphold the terms of the agreement.
For a prospective franchisee, this clause indicates that the future of the franchise relationship could depend on an entity other than the original franchisor. While the FDD stipulates that the assignee must be financially sound, it's important for franchisees to understand that the vision, support, and overall management style could change if City Publications assigns the franchise agreement to a new entity.