Is City Publications allowed to operate other businesses with different marks within a franchisee's Exclusive Territory?

According to City Publications' 2025 Franchise Disclosure Document, City Publications' affiliate, or another entity with similar ownership, may in the future offer a license for an advertising business featuring coupon booklets or some other coupon format, but not the loose card decks offered through the Franchise Disclosure Document, and not using any of the proprietary marks licensed in the Franchise Agreement. These businesses might operate within the area City Publications licenses to a franchisee under their Franchise Agreement.

This means that while City Publications grants franchisees an exclusive territory for their specific City Publications business model (card decks), the franchisor and its affiliate retain the right to operate or license other advertising businesses, potentially with different formats like coupon booklets, within the same territory. However, these other businesses cannot use the City Publications trademarks or offer the same loose card deck product.

For a prospective franchisee, this implies a potential for competition from the franchisor's other ventures within their exclusive territory. While these ventures would offer different products and operate under different marks, they could still compete for advertising clients in the same geographic area. It is important for a prospective franchisee to understand the potential impact of these competing ventures on their business and to evaluate the market potential in their exclusive territory accordingly.