When is the Franchise Fee considered fully earned by City Publications?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
SECTION 4. FEES
Franchisee agrees to pay Franchisor the following fees and amounts at the times specified herein:
A. Franchise Fee
Franchisee shall pay a Franchise Fee to Franchisor of ___________________________________ Dollars ($_________). The fee is fully due and payable when you sign this Franchise Agreement. See Exhibit C for any applicable state law affecting the due date of the Franchise Fee. The Franchise Fee shall be deemed fully earned upon payment and is nonrefundable. Said Franchise Fee includes payment for:
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- Access to Franchisor's proprietary materials and process including, but not limited to, an initial supply of sales material;
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- Use of a unique domain for design and creation of a designated website for the Franchised Business, and a link between such website and the CITY PUBLICATIONS website. This domain is also for all email communication related to the franchise;
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- Exclusive rights to distribute Card Packs and other approved products within the Exclusive Territory as described in Section 3.B;
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- The CITY PUBLICATIONS "Quick Start Program," which program consists of information, activities and materials designed to assist Franchisee in commencing operation of the Franchised Business. The Quick Start Program is provided to Franchisee upon execution of this Agreement and Franchisee's payment of the Franchise Fee;
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- An initial training program and training materials to be provided to Franchisee pursuant to Section 10.A;
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- On-site sales training and assistance as further described in Section 10.D;
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Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the franchise fee is deemed fully earned upon payment by the franchisee. This fee is nonrefundable. The franchise fee provides the franchisee with several benefits, including access to City Publications' proprietary materials, a unique domain for a designated website, exclusive territory rights, the Quick Start Program, initial training, and on-site sales training assistance. It also covers City Publications' general sales and marketing expenses, as well as legal, accounting, and other professional fees.
For a prospective City Publications franchisee, this means that once the franchise fee is paid, City Publications considers it earned and will not refund it, regardless of whether the franchisee's business succeeds or if the agreement is terminated early. The franchisee gains immediate access to the resources and support outlined in the FDD upon payment of this fee.
It is important for potential franchisees to carefully consider the implications of this nonrefundable fee and to conduct thorough due diligence before signing the franchise agreement. Understanding what the franchise fee covers and the value of those resources is crucial in making an informed decision. Prospective franchisees should also be aware of any applicable state laws affecting the due date of the Franchise Fee, as referenced in Exhibit C of the Franchise Agreement.