Does the definition of 'Competitive Business' for City Publications include magazines?
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 City Publications' 2025 Franchise Disclosure Document, the definition of a 'Competitive Business' does include magazines. The FDD specifies that a 'Competitive Business' includes businesses that sell direct mail advertising or similar services to those offered as part of the City Publications system.
The definition extends to businesses where confidential information could be used to the disadvantage of City Publications or its franchisees. However, it excludes businesses operated under a franchise agreement with City Publications or ownership of less than 5% of a publicly-traded corporation's stock where similar services constitute less than 10% of the corporation's gross sales.
Specifically, the FDD states that 'Competitive Business' includes, among other things, magazines, print ads, internet advertising, email advertising, QR codes, and search engine optimization services. This means that as a City Publications franchisee, you would be restricted from owning, operating, or being involved with a magazine or other similar advertising business within your exclusive territory or near other City Publications businesses, as defined in the agreement.