Is the City Publications affiliate allowed to offer a license for an advertising business in the future?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
We have one Affiliate, City Publications Service, Inc. (the "Affiliate"). Our Affiliate shares our offices at 1300 Parkwood Circle SE, Suite 100, Atlanta, Georgia 30339. Our Affiliate provides marketing, and design services and mailing list services to our franchisees, in addition to its other marketing activities unrelated to the franchise system. No affiliate or predecessor has previously offered franchises in this or any other line of business. Our Affiliate, or another entity with similar ownership, may in the future offer a license for an advertising business that would feature coupon booklets or some other coupon format, but not the loose card decks offered through this Disclosure Document, and not using any of the proprietary marks licensed in your Franchise Agreement. Those businesses might operate within the area we license to you under your Franchise Agreement.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–9)
What This Means (2025 FDD)
According to City Publications's 2025 Franchise Disclosure Document, the company's affiliate, City Publications Service, Inc., or another entity with similar ownership, may offer a license for an advertising business in the future. However, this advertising business would feature coupon booklets or some other coupon format, and not the loose card decks offered through the City Publications franchise. Additionally, it would not use any of the proprietary marks licensed in the Franchise Agreement.
This means that a prospective City Publications franchisee could potentially face competition from a business licensed by City Publications's affiliate. This business would offer a different advertising format (coupon booklets instead of card decks) and would operate under a different brand name, as it could not use City Publications's proprietary marks. The FDD states that these businesses might operate within the area licensed to the franchisee under their Franchise Agreement.
This potential competition is an important factor for prospective franchisees to consider. While the affiliate's business would offer a different product and brand, it could still draw customers from the same target market. Franchisees should carefully evaluate the potential impact of this competition on their business and consider asking City Publications for more information about the affiliate's plans and the potential overlap in target markets.