What are the main sources of revenue for City Publications?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
, the artwork and design component of a Card Deck advertisement or other approved product or franchise advertising;
"Graphic Services Fee" means the fee paid to Franchisor by Franchisee for Graphic Services, which fee may vary according to factors such as design specifications and economic conditions, including supply and demand;
"Gross Sales" means the aggregate of all revenue accrued from the sale of all direct mail advertising and from goods and services and products from all sources in connection with the Franchised Business, whether for check, cash, credit or otherwise, but excluding all qualified refunds made in good faith, and any sales and equivalent taxes which are collected by Franchisee for or on behalf of any governmental taxing authority. Accrued revenue includes the cash value of any payments in kind or barters exchanges. Revenue accrues and shall be accounted for in Gross Sales upon Franchisee's entering into any agreement for the sale of products and services, whether such agreement is written, verbal or constituted by the submittal of materials for processing or any other act of agreement;
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, the franchisee's main source of revenue is from the sale of direct mail advertising, goods, services, and products. Gross sales include all revenue accrued from these sources, whether paid by check, cash, credit, or other means. This also encompasses the cash value of payments made through bartering. However, qualified refunds made in good faith and any sales or equivalent taxes collected on behalf of a governmental taxing authority are excluded from gross sales.
For a prospective City Publications franchisee, this definition of gross sales is important because royalties and other fees owed to the franchisor are typically calculated as a percentage of gross sales. Understanding what constitutes gross sales ensures accurate reporting and payment of these obligations. It is also important to note that revenue is considered accrued and included in gross sales as soon as the franchisee enters into an agreement for the sale of products and services, regardless of whether the agreement is written, verbal, or implied by the submission of materials for processing.
Furthermore, the FDD specifies that a franchisee must pay City Publications a Graphic Services Fee, which may vary based on design specifications and economic conditions, including supply and demand. Franchisees also pay a Mailing List Rental Fee for the use of City Publication's mailing list for each Card Deck mailing and additional use of the list. These fees, along with royalties, contribute to the overall financial relationship between the franchisee and City Publications.