What is the composition of the Exclusive Territory granted to a City Publications franchisee?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
So long as this Agreement is in force and effect and Franchisee is not in default under any of the terms hereof, Franchisor will neither establish, nor license another to establish or operate, a CITY PUBLICATIONS Business within the geographic area identified in Exhibit A to this Agreement (the "Exclusive Territory"). The Exclusive Territory granted to Franchisee shall consist of approximately one hundred thousand (100,000) homes of an appropriate market value and shall be defined by zip codes. Demographics will be based upon the most recent available U.S. Census data at the time the Exclusive Territory is designated. Franchisee is required to confine its distribution of Card Packs to Franchisee's Exclusive Territory.
Franchisee may solicit for Card Pack advertisements outside of the Exclusive Territory so long as such advertisements are to be directed to consumers residing or situated within the Exclusive Territory. All activity to solicit advertising from individual business owners or other business entities having operations or sites in multiple franchise territories shall be reserved for Franchisor.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the Exclusive Territory granted to a franchisee consists of approximately 100,000 homes of an appropriate market value. This territory is specifically defined by zip codes, providing a clear geographic boundary for the franchisee's operations. The demographic data used to determine the territory's composition is based on the most recent U.S. Census data available at the time the territory is designated.
This exclusive territory grants the franchisee the right to distribute Card Packs, which are packaged advertisements, within the defined area. The franchisee is required to confine its distribution of these Card Packs to its Exclusive Territory. However, City Publications franchisees are allowed to solicit Card Pack advertisements outside of their Exclusive Territory, as long as these advertisements are directed towards consumers who reside or are located within the franchisee's designated territory.
It is important to note that City Publications reserves the right to solicit advertising from individual business owners or other business entities that have operations or sites in multiple franchise territories. This means that while a franchisee has exclusive distribution rights within their territory, the franchisor retains control over larger, multi-territory advertising deals. Prospective franchisees should understand these territorial boundaries and the franchisor's rights to solicit advertising from businesses with operations spanning multiple territories.