Under what conditions may a franchisee use the copyrighted items of City Publications?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
the requirements for a controlled entity transfer (Section 20.C.) apply at signing.
SECTION 3. SCOPE OF LICENSE
A. Grant
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.
B. Exclusive Territory
So long as this Agreement is in force and effect and Franchisee is not in default under any of the terms hereof, Franchisor will neither establish, nor license another to establish or operate, a CITY PUBLICATIONS Business within the geographic area identified in Exhibit A to this Agreement (the "Exclusive Territory"). The Exclusive Territory granted to Franchisee shall consist of approximately one hundred thousand (100,000) homes of an appropriate market value and shall be defined by zip 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 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD page 25)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, a franchisee is granted the right to operate a City Publications business under the System and Marks, contingent upon paying royalties to the franchisor throughout the term of the agreement. This license allows the franchisee to operate the business under the City Publications System and Marks. The franchised business can be operated or administered from any location, subject to zoning and local ordinances, without requiring the franchisor's approval of the site or a storefront. However, if a commercial business location is established, the lease must include a provision that allows the franchisor to assume the lease in the event of the franchisee's default.
City Publications also maintains an internet website at www.citypublication.com, providing information about the City Publications system and the services offered by the franchisor and its franchisees. The franchisor will establish a website for the franchised business and link it to the City Publications website. While the franchisee is responsible for maintaining their website, the franchisor may include information about the franchised business on the City Publications website, requiring the franchisee to prepare the page using a template provided by the franchisor, at the franchisee's expense. All such information is subject to the franchisor's approval before posting.
City Publications retains the sole right to market on the Internet, including all use of websites, domain names, URLs, linking, meta-tags, marketing, auction sites, e-commerce, and co-branding arrangements. The franchisee may be requested to provide content for the franchisor's Internet marketing and must follow the franchisor's Intranet and Internet usage rules, policies, and requirements. The franchisor retains the sole right to use the Marks on the Internet, including on websites, as domain names, directory addresses, search terms, meta-tags, and in connection with linking, marketing, co-branding, and other arrangements, as well as social media and any digital marketing platform. The franchisor also retains the sole right to approve any linking or other use of the City Publications website, and the franchisee may not establish a presence on the Internet that would violate these terms.