What is the required action regarding the distribution of Card Packs within a City Publications franchise?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
ip 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.
C. Franchisor's Rights
Except as otherwise provided, Franchisor retains all of its rights and discretion with respect to the Marks and the System, including the right:
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- To establish and operate, and license others to establish and operate, businesses under the System and Marks at any location outside of the Exclusive Territory as Franchisor deems appropriate;
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- To establish and operate, and license others to establish and operate, businesses under other systems using other proprietary marks both within and outside the Exclusive Territory as Franchisor deems appropriate;
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications's 2025 Franchise Disclosure Document, franchisees are required to confine their distribution of Card Packs to their Exclusive Territory. The Exclusive Territory consists of approximately 100,000 homes of an appropriate market value and is defined by zip codes, based on the most recent available U.S. Census data at the time the territory is designated.
While franchisees must distribute Card Packs within their assigned territory, they are allowed to solicit Card Pack advertisements outside of their Exclusive Territory, provided that these advertisements are directed to consumers within the franchisee's territory. However, City Publications retains the right to solicit advertising from business owners or entities with operations in multiple franchise territories.
In terms of minimum performance, a City Publications franchisee must generate one 50,000 circulation card pack in the first mailing zone as defined within the territory for the first nine months. Each consecutive year thereafter, the franchisee must generate at least four 50,000 circulation cards packs in each zone. Beginning in the fourth year, the franchisee must generate at least five 50,000 circulation cards packs in each zone. Failure to meet the required five mailings results in a penalty of $2,500 per zone for each mailing missed, and failure to pay this amount can lead to termination of the franchise agreement.