Does City Publications make representations about the past financial performance of franchised outlets?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting our President, Richard Houden, at 1300 Parkwood Circle SE, Suite 100, Atlanta Georgia 30339 (770) 951-0048, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 32)
What This Means (2025 FDD)
According to City Publications's 2025 Franchise Disclosure Document, City Publications does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. City Publications also does not authorize its employees or representatives to make any such representations either orally or in writing. However, if a prospective franchisee is purchasing an existing outlet, City Publications may provide the actual records of that outlet.
This policy means that a potential City Publications franchisee will not receive any assurances or projections from the franchisor regarding the financial performance they can expect. This is a common practice among franchisors, as it avoids potential legal issues related to unrealistic or misleading earnings claims.
However, if a franchisee is considering purchasing an existing City Publications outlet, they may be provided with the financial records of that specific outlet. This would allow the potential franchisee to review the actual performance of the business they are considering buying.
It is important for prospective franchisees to be wary of any financial performance information or projections they receive from sources other than the official FDD or the actual records of an existing outlet. Any such information should be reported to City Publications's management, the Federal Trade Commission, and the appropriate state regulatory agencies.