City Publications
Date Incorporation: 2002
Franchising Since: 2007
Headquarters: Georgia
Description: City Publications provides high quality mail advertising. Their target customers are business owners seeking to advertise upscale or big-ticket consumer goods and services to an exclusive group of affluent homeowners.
Franchise Offer: City Publications Franchise Group, Inc offers franchises for the operation of a business which provides high quality direct mail advertising to a target market of affluent homeowners.
Financial Assistance: The franchisor does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.
Training and Assistance: The franchisor will provide an initial training program which the franchisee must attend and complete to the franchisor’s satisfaction. Training will take place at the franchisor’s headquarters in Atlanta, Georgia or at another location that they designate. The training consists of both on-the-job and classroom training.
Territory: When the franchisee signs the franchise agreement, the franchisor will grant them an area known as a Protected Territory within which the franchisor will neither operate nor grant rights to others to operate a substantially similar business specializing in direct mail advertising services. The protected territory will include a population of approximately 100,000 homes of an appropriate market value.
Term of Agreement and Renewal: The term of the franchise agreement is 5 years with an option to renew for 4 additional successive terms of 5 years each for a total of 25 years. The fee for renewal is $500.
Obligations and Restrictions: The franchised business must at all times be under the direct supervision of either the franchisee or their designated manager who has completed the training program. The franchisee may only provide authorized services and products that are within the scope of a business providing direct mail advertising services. The franchisee must refrain from using or permitting the use of the franchised business for any other purpose or activity at any time without first obtaining the franchisor’s written consent.
Total Number of franchises Units: For year ended 2007: 50
Investment Tables:
Initial Investment:
| Name of fee | Low | High |
|---|---|---|
| Franchise Fee | $89,000 | $250,000 |
| Real Estate/Rent | $0 | $500 |
| Utility Deposits | $0 | $500 |
| Leasehold Improvements | $0 | $500 |
| Required Software | $500 | $500 |
| Initial Inventory of Order Forms | $0 | $200 |
| Insurance | $600 | $800 |
| Vehicle | $300 | $600 |
| Office Equipment and Supplies | $0 | $2,500 |
| Training | $250 | $500 |
| Licenses & Permits | $0 | $250 |
| Legal/ Accounting | $500 | $1,000 |
| Additional Funds (3 months) | $1,500 | $10,000 |
| Total | $92,650 | $267,850 |
Ongoing fees:
| Name of fee | Amount |
|---|---|
| Royalty Fee | 6% of Gross Sales |
| Renewal Fee | $500 |
| Appointment Service Fee | Current rates as published in the Manual or a published price list. |
| Graphics Services Fee | Current rates as published in the Manual or a published price list, currently $50.00 per hour. Deck Cards are fixed price depending on the type of work, ranging from ½ hour to 4 ½. hours |
| Mailing List Rental Fee | Current rates as published in the Manual or a published price list, currently $2,500 per 50,000 names for one use. |
| Printing Brokerage Service Fee | Current rates as published in the Manual or a published price list, currently 10% of all printing, packaging and distribution costs except postage. Specialized printing orders are charged at different rates. |
| Postage Expenses | Actual U.S. Postal Service rates |
| Audit Expenses | Cost of audit plus interest on underpayment |
| Late Fees | $100 per occurrence, plus interest on overdue amount at highest applicable legal rate, not to exceed 1.5% per month |
| Insurance Policies | Amount of unpaid premiums |
| Transfer Fee | $20,000 |
| Additional Training | Current rates as published in the Manual; currently $400 per day, and the franchisee’s expenses as well as their employees' expenses in attending |
| Additional Operations Assistance | Current rates as published in the Manual; currently $400 per day per person plus expenses |
| Ongoing Training | The franchisee is required to pay their expenses as well as their employees' expenses in attending these programs |
| Liquidated Damages | Will vary under the circumstances |
The above information has been taken from the UFOC/FDD of City Publications
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