When is the second royalty installment due for a City Publications deck sale?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| sFDD2025 | Franchisee's Initials: |
|---|---|
B. Royalty Fee and Advertising Fee
Franchisee shall pay without offset, credit, or deduction of any nature to Franchisor, so long as this Agreement shall be in effect, a Royalty Fee equal to six percent (6%) of Gross Sales. For any revenue or non-revenue sale, the minimum gross sales reported will be $2500.00 and the 6% royalty paid out will be from that amount. The royalty is due and payable in two installments each quarter. Each of Franchisee's deck sales will be scheduled by the parties hereto and the first royalty installment is due three weeks before the scheduled closing date for that deck, based on a minimum of 12 cards in the deck. The second installment is due immediately after the mailing of the deck, a
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, royalty fees are paid in two installments each quarter. For each deck sale, the first royalty installment is due three weeks before the scheduled closing date, assuming a minimum of 12 cards in the deck. The second royalty installment for a City Publications deck sale is due immediately after the mailing of the deck.
The second installment serves as a reconciliation payment. This means that after the deck is mailed, City Publications will calculate if any additional royalties are due. This could include royalties for cards printed in excess of the minimum of 12.
This reconciliation process ensures that City Publications franchisees pay the correct royalty amount based on the actual number of cards printed and mailed in each deck. Franchisees should keep accurate records of their deck sales and card counts to ensure accurate royalty payments and avoid discrepancies.