Where in the City Publications franchise agreement is the scope of the license defined?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
SECTION 3. SCOPE OF LICENSE
A. Grant
In consideration of the royalties paid to Franchisor by Franchisee throughout the term hereof, Franchisor hereby grants to Franchisee, and Franchisee undertakes and accepts, upon the terms and conditions herein contained, the right, license and privilege to operate one (1) CITY PUBLICATIONS Business under the System and Marks. Subject to zoning and local ordinances, the Franchised Business may be operated or administered from any location. Franchisee is not required to obtain Franchisor's approval of any site, or to obtain a store front or commercial space, for the operation of the Franchised Business. If Franchisee establishes a commercial business location, any lease for the location must contain a provision entitling Franchisor, or its nominee, to assume such lease upon Franchisee's default of said lease.
B. Exclusive Territory
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.
C. Franchisor's Rights
Except as otherwise provided, Franchisor retains all of its rights and discretion with respect to the Marks and the System, including the right:
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the scope of the license granted to the franchisee is defined in Section 3 of the franchise agreement.
Specifically, Section 3.A, titled "Grant," outlines the rights, license, and privilege the franchisor grants to the franchisee to operate one City Publications business under the System and Marks, in exchange for royalties paid to the franchisor. The franchised business can be operated from any location, subject to zoning and local ordinances, without requiring the franchisor's approval of the site or a storefront. However, if the franchisee establishes a commercial business location, any lease must include a provision allowing the franchisor to assume the lease upon the franchisee's default.
Section 3.B, titled "Exclusive Territory," states that as long as the agreement is in effect and the franchisee is not in default, City Publications will not establish or license another to establish or operate a City Publications business within the geographic area defined in Exhibit A of the agreement. This exclusive territory will consist of approximately 100,000 homes of an appropriate market value, defined by zip codes and based on the most recent available U.S. Census data. The franchisee is required to confine its distribution of Card Packs to this exclusive territory but may solicit Card Pack advertisements outside the territory if the advertisements target consumers within it. All advertising solicitation from business owners with operations in multiple franchise territories is reserved for the franchisor.
Section 3.C, titled "Franchisor's Rights," clarifies that, except as otherwise provided, City Publications retains all rights and discretion regarding the Marks and the System.