Does City Publications require franchisees to obtain all applicable business permits and licenses before commencing operations?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall secure and maintain in force all required licenses, permits and certificates relating to the operation of the Franchised Business and shall operate the Franchised Business in full compliance with all applicable laws, ordinances and regulations including, without limitation, all government regulations. It is the responsibility of the Franchisee, with his lawyer and CPA, to determine if there are any print taxes or sales taxes due on sales, or use taxes on products and services applicable to the franchised business. Each state has its own rules on these taxes and some states do collect them on businesses like the franchised business. The Franchisor has made no representation to Franchisee about print and sales tax rules in Franchisee's state and it is clearly understood that this is the responsibility of the franchisee.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, franchisees are responsible for securing and maintaining all necessary licenses, permits, and certificates required to operate their City Publications franchise. This includes adhering to all applicable laws, ordinances, and government regulations.
City Publications emphasizes that it is the franchisee's responsibility, along with their legal and accounting advisors, to determine if any print taxes or sales taxes are due on sales, or use taxes on products and services applicable to the franchised business. The FDD notes that tax rules vary by state, and some states do collect these taxes on businesses like City Publications franchises.
The FDD makes it clear that City Publications has not provided any representations to franchisees regarding print and sales tax rules in their specific state. It is explicitly understood that determining and complying with these tax obligations is the franchisee's responsibility. This places the onus on the franchisee to conduct thorough due diligence and seek professional advice to ensure full compliance with all local, state, and federal regulations and tax requirements.