Is a City Publications franchisee obligated to follow the franchisor's advice on pricing?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's advice or guidance to Franchisee relative to prices for products and services that, in Franchisor's judgment, constitutes good business practice is based upon the experience of Franchisor and its franchisees in operating CITY PUBLICATIONS Businesses and an analysis of the costs of such services and prices charged for competitive services and products. Franchisee shall have the sole right to determine the prices to be charged by the Franchised Business.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, franchisees have the final say in setting prices for their business. While City Publications may offer advice and guidance on pricing based on their experience and market analysis, the franchisee is not obligated to follow it.
Specifically, City Publications' advice is based on the experience of the franchisor and its franchisees in operating City Publications businesses, as well as an analysis of the costs of such services and prices charged for competitive services and products. This advice is intended to reflect good business practices.
However, the FDD clearly states that the franchisee retains the sole right to determine the prices to be charged by the franchised business. This means that a City Publications franchisee can consider the franchisor's advice but ultimately make independent pricing decisions based on their local market conditions, business goals, and other factors.
This flexibility in pricing can be a significant advantage for franchisees, allowing them to adapt to local market conditions and competitive pressures. However, it also means that franchisees must take responsibility for their pricing strategies and ensure they are profitable and sustainable.