Does the definition of 'Competitive Business' for City Publications include email advertising?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
"Competitive Business" means any business that sells, or grants franchises or licenses to others to operate a business that
sells, direct mail advertising or similar services to those offered as part of the CITY PUBLICATIONS System or in which Confidential Information could be used to the disadvantage of Franchisor or its other franchisees; provided, however, that the term "Competitive Business" shall not apply to: (a) any business operated by Franchisee under a Franchise Agreement with Franchisor, or (b) ownership for investment purposes of less than five percent (5%) of the stock of any publicly-traded corporation in which similar services as those offered as part of the System are sold only as an ancillary product, constituting less than ten percent (10%) of the aggregate gross sales of such business. Without limiting the foregoing, "Competitive Business" includes, among other things, magazines and any other print ads, internet advertising, email advertising, QR codes, and search engine optimization services;
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, the definition of a 'Competitive Business' does include email advertising. The FDD specifies that a 'Competitive Business' is any business that sells direct mail advertising or similar services to those offered by City Publications.
Specifically, the definition extends to various forms of advertising and marketing. This means that if a franchisee engages in or owns a business involved in these activities, it would be considered a competitive business under the terms of the franchise agreement.
This definition is broad, encompassing not only direct competitors in direct mail advertising but also businesses involved in other advertising methods that could potentially draw customers away from City Publications. This restriction aims to protect City Publications' market position and the interests of its franchisees by preventing franchisees from simultaneously operating businesses that could compete with the franchise.