What is the Late Fee for City Publications per occurrence?
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. |
| Minimum Royalty (1) | $2,500 for each mailing that you fail to achieve each year. | Each Year | After the first calendar year of the term of your franchise, you must do a minimum of four mailings in each mailing zone granted to you, or pay us $2,500 for each zone and mailing that you fail to do. You must do the first mailing within the first nine months. |
| Renewal Fee | $1,000 | At the end of each year term | Payable to us to renew the term of the franchise at the expiration of the initial term or renewal term. (Section 5.B) |
| Graphics Services Fee | Current rates as published in the Manual or a published price list, currently $60.00 per hour. For other programs design fee of $60.00 per hour applies. | Time of service | Payable to our Affiliate for preparing printer-ready artwork using information and materials that you provide. You must obtain the advertiser’s approval of the artwork and handle all other communications with the advertiser. (Section 4.F) |
| Mailing List Rental Fee | Current rates and details are published in the Manual or a published price list, currently | Time of rental | Payable to our Affiliate for each use of the Mailing List. Our mailing data is continually updated. (Section 4.D) |
| Type of Fee | Amount $1,500 per 50,000 names for one use. | Due Date | Remarks Mailing List payments are not refundable. |
| Postage Expenses | Actual U.S. Postal Service rates | As invoiced | You reimburse us any postage expenses we may incur for the mailing of direct mail advertisements that we mail on your behalf. (Section 4.H) |
| Audit Expenses | Cost of audit plus interest on underpayment | As invoiced | Audit costs payable only if the audit shows an understatement in amounts due of at least 3%. (Section 12.D) |
| Late Fees | $100 per occurrence, plus interest on overdue amount at highest applicable legal rate, not to exceed 1.5% per month | With late payment | Applies to all Royalty Fee or other fee payments, postage expenses and other amounts due us or our Affiliate (Section 4.K) Note that the maximum interest rate in California is 10% annually. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, a franchisee will incur a late fee of $100 per occurrence if payments are not made on time. This late fee applies to all Royalty Fee or other fee payments, postage expenses and other amounts due to City Publications or its Affiliate. In addition to the $100 late fee, interest will be charged on the overdue amount at the highest applicable legal rate, but not exceeding 1.5% per month. It is important to note that the maximum interest rate in California is 10% annually.
This means that if a City Publications franchisee is late on any payment, they will be charged a flat $100 fee, plus interest on the outstanding balance. The interest rate could vary depending on the applicable legal rate, but it will not exceed 1.5% per month, or 10% annually in California. Franchisees should be aware of these late fee and interest charges to avoid incurring additional costs.
Late fees are a common practice in franchising to encourage timely payments. Franchise agreements typically outline the specific fees and interest rates that will be applied to overdue amounts. Prospective City Publications franchisees should carefully review the payment terms and late fee policies outlined in the Franchise Agreement to fully understand their obligations and avoid any unexpected charges.