What happens if a City Publications franchisee fails to do the required amount of mailings?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
her category of services or products unless approved in writing by Franchisor. Franchisor shall notify Franchisee of services and products which are authorized in the Manual and subsequent revisions to the Manual.
B. Annual Minimum Performance Requirements
The parties recognize that the success of the Franchise System is dependent upon the best efforts of each franchisee in its Exclusive Territory. Franchisee must generate one 50,000 circulation card pack in the first mailing zone as defined within the territory for the first nine months; each consecutive year thereafter, franchisee must generate at least four 50,000 circulation cards packs in each zone. Beginning of the fourth year, Franchisee must generate at least five 50,000 circulati
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications's 2025 Franchise Disclosure Document, franchisees must meet specific annual minimum performance requirements related to generating circulation card packs. Initially, a franchisee must generate one 50,000 circulation card pack in the first mailing zone within the territory for the first nine months. Each consecutive year, the franchisee needs to generate at least four 50,000 circulation cards packs in each zone. Starting in the fourth year, this requirement increases to at least five 50,000 circulation cards packs in each zone. These requirements are in place because the success of the City Publications franchise system depends on each franchisee's best efforts within their exclusive territory.
If a City Publications franchisee fails to meet the requirement of five mailings per zone, they will owe City Publications $2,500 per zone for each mailing that was missed. This acts as a financial penalty for underperformance.
Furthermore, if the franchisee fails to pay the owed amount upon receiving a bill for the missed mailings, City Publications has the right to terminate the Franchise Agreement. This highlights the importance of adhering to the minimum mailing requirements and ensuring timely payments to avoid potential termination of the franchise agreement. This non-compliance can lead to a significant financial burden and ultimately, the loss of the franchise.