Are Mailing List payments to City Publications refundable?
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 |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, payments for Mailing List rentals are not refundable. The FDD specifies that franchisees pay a fee to City Publications' affiliate for each use of the mailing list, with rates and details published in the manual or a price list. Currently, the fee is $1,500 per 50,000 names for one use.
This non-refundable policy means that once a City Publications franchisee pays for a mailing list, they cannot get a refund, regardless of whether they use the list or if the mailing is successful. This is an important consideration for prospective franchisees as it represents a sunk cost. Franchisees should carefully plan their marketing campaigns and assess the potential return on investment before renting a mailing list.
In addition, the FDD states that all fees are non-refundable. This blanket statement reinforces the non-refundable nature of the mailing list rental fee, as well as other fees outlined in Item 6. Franchisees need to factor this into their financial planning and budgeting, understanding that payments made to City Publications are generally non-refundable.