Upon termination or expiration of the City Publications agreement, what must a franchisee do to the business premises?

According to City Publications' 2025 Franchise Disclosure Document, the franchisee's obligations regarding the business premises upon termination or expiration of the franchise agreement include the possibility of assigning or subleasing the premises to City Publications. Specifically, City Publications has the right to enter any premises leased for the Franchised Business. Upon demand by City Publications, the franchisee must assign their interest in the lease to City Publications. If an assignment is prohibited, the franchisee must sublease the premises to City Publications for the full remaining term and on the same terms and conditions as the franchisee's lease. The franchisee must provide City Publications with satisfactory evidence of compliance with this obligation within 30 days after termination or expiration of the agreement. City Publications also retains the right to make rental and other payments directly to the landlord.

This requirement ensures that City Publications can maintain control over the location of the business, if desired, even after a franchisee leaves the system. This is particularly important if the location is considered valuable or strategic for the brand. By having the option to take over the lease, City Publications can seamlessly continue operations at that location with a new franchisee or company-owned store.

For a prospective franchisee, this means that you may need to relinquish your rights to the business premises at the end of your franchise term if City Publications chooses to exercise its option. It is important to carefully review the lease agreement and understand the terms of assignment or subleasing. Franchisees should also factor in potential costs associated with vacating the premises or negotiating lease terms with City Publications. It is also important to note that the franchisee is responsible for providing evidence of compliance with these obligations within 30 days of termination or expiration, so prompt action is necessary.