Does City Publications require franchisees to join any purchasing or distribution cooperatives?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
We may negotiate group rates, as appropriate, for purchases of equipment and supplies necessary for the operation of the Franchised Business. This is calculated before any fees to franchise are applied. There are no purchasing or distribution cooperatives which you are required to join.
Although currently we (nor any Affiliate) do not receive revenue or other material consideration from any third-party suppliers as a result of purchases by you or any other franchisee, we retain the right to do so in the future. There are no other approved suppliers in which any of our officers owns an interest.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 16–18)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, franchisees are not required to join any purchasing or distribution cooperatives. However, City Publications may negotiate group rates for equipment and supplies.
City Publications does require franchisees to purchase certain proprietary items and services, such as customized direct mail Card Packs, customized Specialty Programs, SEO Programs, Graphics Services, target market mailing lists, lead generation, packaging, and branding materials, exclusively from City Publications, its affiliates, or designated suppliers. These proprietary purchases represent approximately 100% of the cost of goods sold for franchisees.
While City Publications does not currently receive revenue from third-party suppliers based on franchisee purchases, it retains the right to do so in the future. Less than 5% of the required expenditures for leases and purchases in establishing the franchised business will be from designated sources, and less than 10% of operating expenses will be purchased from City Publications, its affiliates, or a designated supplier. Although franchisees are not required to purchase from designated or approved sources to receive material benefits, purchasing from unapproved sources can result in the termination of the Franchise Agreement.