Can the City Publications initial franchise fee be paid in installments?
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 5 — INITIAL FEES (FDD page 10)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the franchise fee is fully due and payable when you sign the Franchise Agreement. The FDD does not state that the initial franchise fee can be paid in installments. Instead, the agreement specifies that the full amount is required upon signing.
This means a prospective City Publications franchisee must have the entire franchise fee amount available at the time of signing the agreement. This could impact a franchisee's initial financial planning, as they need to account for this upfront cost.
It is important to note that Exhibit C of the Franchise Agreement may contain applicable state laws affecting the due date of the Franchise Fee. A potential franchisee should review Exhibit C carefully to understand if any state-specific regulations might influence the payment terms. A prospective franchisee should confirm with the franchisor whether any alternative payment arrangements are possible, despite the standard terms outlined in the FDD.