What is the royalty rate for revenues generated by the optional VerCast program for City Publications franchisees?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
We have an optional program with VerCast, an unrelated third party, which our franchisees in good standing with us can choose to participate in.
Instead of a mailing of a full deck of advertising cards, this is a mailing of only one card.
Revenues generated by this program are subject to reduced royalties at a rate of 3% of the revenue from that mailing.
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to City Publications's 2025 Franchise Disclosure Document, franchisees who participate in the optional VerCast program pay a reduced royalty rate of 3% on the revenue generated from single-card mailings. This is in contrast to the standard royalty rate of 6% for regular card deck mailings. Additionally, franchisees who opt into the VeriCast program are required to pay a $65 monthly management fee, payable in advance on the first of each month.
It's important to note that the VeriCast program is not available in all geographic areas and can be terminated by VeriCast at any time. To be eligible for the VeriCast program, franchisees must first publish their deck mailers and continue to produce quarterly 50,000 deck mailers. This suggests that the VeriCast program is intended as a supplement to, rather than a replacement for, the standard City Publications mailing services.
The reduced royalty rate may incentivize franchisees to participate in the VeriCast program, potentially attracting advertisers who prefer single-card mailings. However, the $65 monthly management fee and the requirement to maintain standard deck mailers should be carefully considered when evaluating the program's profitability. Prospective franchisees should also confirm the availability of the VeriCast program in their specific geographic area and understand the potential for termination by VeriCast.