Does the definition of 'Competitive Business' for City Publications include search engine optimization services?
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 search engine optimization services. The FDD specifies that a 'Competitive Business' is any business that sells direct mail advertising or similar services to those offered as part of the City Publications system.
Specifically, the definition extends beyond just direct mail to include other forms of advertising. The document explicitly lists several examples of what constitutes a 'Competitive Business,' including 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 any business that offers these services, as it would be seen as directly competing with the City Publications franchise.
This restriction is in place to protect City Publications' business model, confidential information, and the interests of its franchisees. However, there are exceptions. The definition of 'Competitive Business' does not apply if the franchisee operates a business under a Franchise Agreement with City Publications, or if they own less than five percent of the stock of a publicly-traded corporation where similar services are sold as an ancillary product, constituting less than ten percent of the aggregate gross sales of such business. Therefore, franchisees need to be aware of these restrictions and exceptions to avoid violating the franchise agreement.