After how many months is the prepaid royalty for a canceled City Publications deck/booklet mailing non-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. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, in the event of a deck or booklet cancellation, any prepaid royalty can be applied to mailings within the subsequent four months, with a limit of two mailings. After this four-month period, the prepaid royalty becomes non-refundable.
This means that if a City Publications franchisee cancels a deck or booklet mailing for which they have already paid royalties, they have a limited window to utilize those prepaid royalties for other mailings. Specifically, the franchisee has four months to apply the prepaid amount to a maximum of two additional mailings. This provides some flexibility for franchisees who may need to adjust their mailing schedules or strategies.
However, it's crucial for prospective City Publications franchisees to understand that any prepaid royalties not used within this four-month timeframe are forfeited. This policy underscores the importance of careful planning and execution of mailing schedules to avoid potential financial losses due to unused prepaid royalties. Franchisees should consider this policy when making decisions about mailing frequency and prepayment options.