Does City Publications currently receive revenue from third-party suppliers based on franchisee purchases?

According to City Publications' 2025 Franchise Disclosure Document, City Publications does not currently receive revenue or other material consideration from third-party suppliers based on franchisee purchases. However, City Publications retains the right to do so in the future. This means that while franchisees are not currently contributing to the franchisor's revenue through supplier kickbacks, this could change during the term of the franchise agreement.

This arrangement is not uncommon in franchising, where franchisors often negotiate deals with suppliers and may receive rebates or commissions based on franchisee purchases. For a prospective City Publications franchisee, it is important to understand that while this is not currently the case, the franchisor has the option to implement such a system in the future. This could potentially impact the cost of goods and services for the franchisee, depending on the terms of any future agreements between City Publications and its suppliers.

It is also worth noting that City Publications estimates less than 5% of required expenditures for leases and purchases in establishing a franchised business will be from designated sources, and less than 10% of expenditures for operating expenses will be purchased from City Publications, its affiliates, or a designated supplier. This suggests that franchisees have some flexibility in sourcing certain goods and services, although City Publications maintains control over proprietary products and services. Franchisees must purchase all proprietary products and services from City Publications, its affiliates, or a designated supplier.