Can a City Publications franchisee solicit advertisers outside of their Exclusive Territory?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
xclusive 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:
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- To establish and operate, and license others to establish and operate, businesses under the System and Marks at any location outside of the Exclusive Territory as Franchisor deems appropriate;
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- To establish and operate, and license others to establish and operate, businesses under other systems using other proprietary marks both within and outside the Exclusive Territory as Franchisor deems appropriate; provided, however, that such other business will not be a loose card deck business similar to the Franchised Business if located within the Exclusive Territory.
Source: Item 12 — TERRITORY (FDD page 24)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, franchisees can solicit advertisers outside their exclusive territory under specific conditions. A City Publications franchisee is permitted to solicit advertisers outside of their Exclusive Territory as long as the advertisements purchased are directed to consumers within the franchisee's Exclusive Territory. However, the right to solicit advertising from businesses with operations in multiple franchise territories is reserved for City Publications itself. City Publications states they will make reasonable efforts to ensure fair commission is paid to the franchisee for these coordinated advertising efforts.
This policy allows franchisees to expand their reach for potential advertisers while protecting the integrity of the franchise system. By focusing the distribution of advertisements within the franchisee's territory, City Publications ensures that the benefits of the advertising are localized and measurable.
It's important to note that franchisees are not allowed to direct mail advertise outside of their Exclusive Territory. Additionally, franchisees cannot use other distribution channels like the internet, catalogs, or telemarketing to make sales outside their territory without permission from City Publications. This restriction ensures that the franchisee's primary focus remains on their designated area and that City Publications maintains control over broader marketing strategies.
Prospective franchisees should clarify with City Publications how commissions are calculated and distributed for coordinated advertising efforts. Understanding these details will help franchisees assess the potential revenue from advertisers with a multi-territory presence and how it contributes to their overall business.