If a City Publications deck mailing is canceled, how is the prepaid royalty handled?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 6% of Gross Sales for Standard card deck mailings. 3% of Gross Sales for single card mailings and digital advertising | Payable twice each calendar quarter, based on the schedule for each deck mailing | See definition of Gross Sales.2 (Section 1) In case of deck/booklet cancelation, any royalty prepaid for that deck or booklet will be applied to any mailings taking place within the next four months, up to a maximum of two mailings. After four months, the prepaid royalty is non-refundable. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to City Publications's 2025 Franchise Disclosure Document, if a deck or booklet mailing is canceled, any royalty prepaid for that deck or booklet will be applied to mailings taking place within the next four months, up to a maximum of two mailings. After four months, the prepaid royalty becomes non-refundable.
This means that if a City Publications franchisee prepays royalties for a mailing that is subsequently canceled, they will not automatically receive a refund. Instead, the prepaid amount will be credited towards upcoming mailings within a four-month window. This provides some flexibility for franchisees to reschedule or adjust their marketing plans without immediately losing the prepaid royalty.
However, there are limitations. The credit can only be applied to a maximum of two mailings within those four months. If the full prepaid amount is not used within that timeframe, or if more than two mailings occur, the remaining balance is forfeited and becomes non-refundable. This policy encourages franchisees to promptly reschedule canceled mailings to avoid losing their prepaid royalties. It also appears that all fees paid to City Publications are non-refundable.