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City Publications Franchise Cost & Fees

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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