What is City Publications' policy if the population increases in a franchisee's territory?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
So long as this Agreement is in force and effect and Franchisee is not in default under any of the terms hereof, Franchisor will neither establish, nor license another to establish or operate, a CITY PUBLICATIONS Business within the geographic area identified in Exhibit A to this Agreement (the "Exclusive Territory"). The Exclusive Territory granted to Franchisee shall consist of approximately one hundred thousand (100,000) homes of an appropriate market value and shall be defined by zip codes. Demographics will be based upon the most recent available U.S. Census data at the time the Exclusive Territory is designated. Franchisee is required to confine its distribution of Card Packs to Franchisee's Exclusive Territory.
Franchisee may solicit for Card Pack advertisements outside of the Exclusive Territory so long as such advertisements are to be directed to consumers residing or situated within the Exclusive Territory. All activity to solicit advertising from individual business owners or other business entities having operations or sites in multiple franchise territories shall be reserved for Franchisor.
Source: Item 12 — TERRITORY (FDD page 24)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the Exclusive Territory granted to a franchisee consists of approximately 100,000 homes of an appropriate market value and is defined by zip codes. These demographics are based on the most recent available U.S. Census data at the time the Exclusive Territory is designated. The FDD does not specifically address the policy or procedure should the population increase within a franchisee's territory after the initial designation.
Because the franchise agreement defines the territory at the time of designation using census data, a population increase would not automatically expand the territory. The franchisee is required to confine its distribution of Card Packs to the initially defined Exclusive Territory, but may solicit advertisements from businesses outside of it as long as the advertisements target consumers within their territory.
As the FDD does not address population increases, a prospective franchisee should inquire with City Publications about the possibility of modifying the territory if the population increases significantly. It would be prudent to understand if there are any mechanisms to renegotiate territory boundaries based on demographic shifts to ensure the franchise can capitalize on growth in the area.