Does City Publications require franchisees to obtain approval for the location of their Franchised Business?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of the royalties paid to Franchisor by Franchisee throughout the term hereof, Franchisor hereby grants to Franchisee, and Franchisee undertakes and accepts, upon the terms and conditions herein contained, the right, license and privilege to operate one (1) CITY PUBLICATIONS Business under the System and Marks. Subject to zoning and local ordinances, the Franchised Business may be operated or administered from any location. Franchisee is not required to obtain Franchisor's approval of any site, or to obtain a store front or commercial space, for the operation of the Franchised Business. If Franchisee establishes a commercial business location, any lease for the location must contain a provision entitling Franchisor, or its nominee, to assume such lease upon Franchisee's default of said lease.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, franchisees are not required to obtain approval from City Publications for the location of their business. Subject to zoning and local ordinances, the Franchised Business may be operated or administered from any location. Franchisees are also not required to obtain a store front or commercial space. However, if a franchisee chooses to establish a commercial business location, the lease must contain a provision that allows City Publications to assume the lease in the event of the franchisee's default.
This policy provides City Publications franchisees with significant flexibility in choosing a location that suits their needs and budget. The ability to operate from any location, including a home office, can substantially reduce overhead costs associated with renting or leasing commercial space. However, franchisees need to ensure compliance with local zoning and ordinances, and they must include a clause in any commercial lease that protects City Publications' interests.
While City Publications does not require location approval, franchisees should still carefully consider factors such as accessibility, visibility, and proximity to their target market when selecting a location. The requirement to include a lease assumption clause is a standard practice in franchising, designed to protect the franchisor's brand and ensure business continuity in case of franchisee default. Franchisees should consult with legal counsel to fully understand the implications of this clause before signing a lease agreement.