What is the minimum royalty payment due for any revenue or non-revenue sale for a City Publications franchise?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| sFDD2025 | Franchisee's Initials: |
|---|---|
B. Royalty Fee and Advertising Fee
Franchisee shall pay without offset, credit, or deduction of any nature to Franchisor, so long as this Agreement shall be in effect, a Royalty Fee equal to six percent (6%) of Gross Sales. For any revenue or non-revenue sale, the minimum gross sales reported will be $2500.00 and the 6% royalty paid out will be from that amount. The royalty is due and payable in two installments each quarter. Each of Franchisee's deck sales will be scheduled by the parties hereto and the first royalty installment is due three weeks before the scheduled closing date for that deck, based on a minimum of 12 cards in the deck. The second installment is due immediately after the mailing of the deck, and serves as a reconciliation payment to cover any additional amounts due, including royalties for cards printed in excess of the minimum of 12. Franchisee may also participate in Franchisor's pro
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, franchisees must pay a royalty fee equal to 6% of gross sales. For any revenue or non-revenue sale, the minimum gross sales reported will be $2,500.00. Therefore, the minimum royalty payment due will be 6% of $2,500.00, which equals $150.00.
The royalty fee is payable in two installments each quarter. The first royalty installment is due three weeks before the scheduled closing date for each deck sale, based on a minimum of 12 cards in the deck. The second installment is due immediately after the mailing of the deck and serves as a reconciliation payment to cover any additional amounts due, including royalties for cards printed in excess of the minimum of 12.
City Publications franchisees may also participate in a program where they can mail an individual advertising piece or do digital advertising. The royalty for these programs is 3% of revenue. However, the minimum royalty payment of $150.00 still applies to any revenue or non-revenue sale, regardless of participation in these additional programs.