Under what conditions do the obligations of the Franchisor and Franchisee that survive the expiration or termination of the City Publications franchise agreement cease to be in full force and effect?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
All obligations of Franchisor and Franchisee which expressly or by their nature survive the expiration or termination of this Agreement shall continue in full force and effect subsequent to and notwithstanding their expiration or termination and until satisfied or by their nature expire.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, all obligations of both the franchisor and franchisee that, by their nature, are meant to survive the expiration or termination of the franchise agreement will remain in full effect. This remains true both after the expiration or termination, continuing until these obligations are either completely fulfilled or naturally expire. This means that certain duties and responsibilities outlined in the agreement do not simply vanish once the franchise term ends.
For a prospective City Publications franchisee, this implies a need to carefully understand which obligations are designed to survive the agreement's end. These could include, but are not limited to, non-compete clauses, confidentiality agreements, or financial responsibilities. Franchisees should pay close attention to Section 19, which likely contains many of these stipulations, as referenced in item 23 regarding receipts.
This clause ensures that both City Publications and the franchisee are held accountable for specific responsibilities even after the formal agreement concludes, providing a framework for a fair resolution of ongoing matters. It is common in franchising to have certain clauses survive termination to protect the brand and proprietary information, and to ensure a smooth transition.