City Publications

The franchise fee of $89,000 is significantly above the typical range for this category. What specific value or services justify this premium pricing compared to competitors?

Your transfer fee of $25,000 is above the typical range. What does this fee cover, and are there circumstances where it can be negotiated or reduced?

The termination rate of 7.5% is more than double the typical range of 0.0-3.83%. What are the primary reasons franchisees are being terminated, and what percentage are franchisor-initiated versus franchisee-initiated?

The minimum performance requirement is 4 fifty-thousand-circulation card packs per zone. What is the typical revenue generated from meeting this minimum, and what percentage of franchisees fall below this threshold?

Late payment interest is charged at 1.5% monthly (18% annually). How frequently are late payments assessed, and has this policy led to franchise terminations?

You offer a 25-year total potential term (initial 5 years plus 4 renewals). What are the 10 renewal conditions, and how difficult have they been for existing franchisees to satisfy?

In 2023, you had 5 terminations and 6 closures in a system of 36 units. Can you provide the specific reasons for each termination and closure, and whether any were related to performance standards or disputes?

The contract contains 11 non-curable defaults resulting in immediate termination. What are these defaults, and do they include performance-based triggers beyond payment default?

All owners with 5% or greater interest must provide personal guarantees. Are there any circumstances under which personal guarantees can be limited or released?

Disputes must be resolved through binding arbitration in Cobb County, Georgia. How many disputes have been arbitrated in the past 3 years, and what were the outcomes?

The non-compete restriction is 2 years within 25 miles of any other City Publications business. If the franchisor terminates a franchisee, does this non-compete still apply, and have former franchisees challenged this restriction?

What is the average gross revenue for franchisees meeting the minimum performance requirements versus those below the threshold?

The system grew from 37 to 40 units over 3 years while experiencing 23 total exits. How many new units were opened during this period, and what is the retention rate for units operating for at least 3 years?

You have no reported litigation in 3 years. Does this mean there have been no disputes, or have disputes been resolved through the mandatory arbitration process?

The royalty rate is 6.0% with a $350 monthly technology fee. Is the technology fee fixed regardless of revenue, and what specific services and technology does it cover?

Franchisees must generate 4 card packs of 50,000 circulation in each zone. How many zones does a typical territory include, and what is the typical total startup investment beyond the $89,000 franchise fee?

The renewal fee is only $1,000. Are there additional costs or capital improvements required to renew the franchise beyond this fee?

What percentage of franchisees have exercised renewal options in the past, and how many have renewed multiple times?

Given the 7.5% termination rate, what support and training does the franchisor provide to help franchisees meet minimum performance requirements and avoid termination?