City Publications Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
City Publications is a local marketing franchise offering direct mail and digital advertising to help businesses reach area customers. Franchisees run local operations, selling advertising and managing campaign production and accounts.
FranchiseVerdict summary · 2026
A City Publications franchise requires a total initial investment of $46K – $270K, including a $29K – $250K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $46K – $270K
- 13th pct Business Serv…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 8th pct Business Serv…
- Units
- 35
- 32nd pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $46K – $270K including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSFinancial statements restated for 2024 and 2023 to correct franchise fee revenue recognition under ASC 606. 2025 audited by a new (successor) auditor located in St. George, Utah; 2024 and 2023 audited by a predecessor auditor (reports dated April 20, 2025). 2025 operating revenue of $1,305,391 includes franchise fees $242,631, royalty fees $227,998, management fees $554,470, and other revenues $280,292.
- RISKVerdict D (Below average), verdict score 38/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- City Publications Franchise Group, Inc.
- Predecessor
- Pride of the City, Inc.
- Prior franchisor entity
- CEO title
- President
- Richard Houden
- CEO experience
- 2002 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- GA
- HQ
- 2018 Powers Ferry Rd, Suite 575, Atlanta, GA 30339
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $1.3M
- vs $1.1M prior year
Affiliated brands
- or another entity with similar ownership
- City Publications Service
- provides marketing
- through common ownership
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Richard Houden
- Headquarters
- GA
- Founded
- 2002
- FDD year
- 2026
- States available
- 17
Can you afford it, and what does the money buy?
Entry cost runs 43% below the typical business services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $2K | $10K |
| Equipment, build-out, other | $5K | $220K |
| Total initial investment | $46K | $270K |
Source: City Publications 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $46K – $270K
- Top 40% of category vs category
- Liquid capital req'd
- $2K – $10K
- Top 40% of category vs category
- Franchise fee
- $29K – $250K
- Top 40% of category vs category
- Royalty
- 6.0%
- tiered · typical 6–8%
- Ad fund
- No advertising fund requirement for franchisees
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Technology fee | $350 |
| Training fee | $500 |
| Transfer fee | $25K |
| Renewal fee | $1K |
| Inventory (initial) | $150 – $200 |
| Total fee load | 6.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
City Publications did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one City Publications unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
64%
Above the 30–60% band. Verify revenue is per-unit average
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Financial statements restated for 2024 and 2023 to correct franchise fee revenue recognition under ASC 606. 2025 audited by a new (successor) auditor located in St. George, Utah; 2024 and 2023 audited by a predecessor auditor (reports dated April 20, 2025). 2025 operating revenue of $1,305,391 includes franchise fees $242,631, royalty fees $227,998, management fees $554,470, and other revenues $280,292.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% — below the Business Services average of 11.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -2.8% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services averages
How City Publications Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 35
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 7
- Term expired, not renewed (per Item 20)
- Turnover rate
- 57.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -2.8%
- Net unit change over 3 years
- 3-yr CAGR
- -2.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 15
- Closed (3yr)
- 5
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 15
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 20.0%
- Franchisor-initiated terminations
- Ceased ops
- 20.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 10
- Loan volume
- $2.1M
- Median loan
- $120K
- 50th percentile
- Charge-off rate
- N/A
- no resolved loans yet — rate needs a terminal outcome
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 2
- Typical loan rate
- 7.7%
- avg rate to borrowers
- Franchised industry avg
- 14.5%
- n=83 loans
- Jobs supported
- 25
- 1.2 per loan
- Lender concentration
- 30%
- top lender's share
Borrower mix: 60% went to startups / new businesses, 40% to established operators
Franchise vs independent — in direct mail advertising, franchised businesses charge off at 14.5% vs 20.4% for independents — franchising is associated with 29% lower SBA default risk in this category.
Top lenders financing City Publications franchisees
Showing 3 of 6 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into City Publications's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 5-year lending trend
Instant access. No subscription.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
City Publications presents caution-level risk due to shrinking unit base, material litigation alleging fraud, opaque financials, and high entry costs relative to system health.
Litigation (Item 3)
LMN Consultants, LLV v. City Publications Franchise Group, Inc., AAA Case No. 01-25-003-7582, filed July 6, 2025; former franchisee claims breach of contract, unjust enrichment, negligent misrepresentation, and fraud arising from termination of franchise agreement; matter going to mediation.
Largest disclosed settlement: $250,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 38 / 100 verdict
- 01MEDUnit count declined 12.5% YoY (35 units), indicating system contraction and potential franchisee dissatisfaction
- 02HIGHActive litigation (2025) alleging fraud, misrepresentation, and breach of contract suggests franchisor credibility and legal exposure issues
- 03MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents validation of 6% royalty sustainability and ROI claims
- 04MEDNo 'Going Concern' statement indicates potential financial instability or undisclosed operational challenges at corporate level
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 4 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 100,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Cobb County, Georgia |
| Jury trial waiver | Yes |
| Governing law | GA |
| Litigation count | 1 |
View Item 3 litigation summary
LMN Consultants, LLV v. City Publications Franchise Group, Inc., AAA Case No. 01-25-003-7582, filed July 6, 2025; former franchisee claims breach of contract, unjust enrichment, negligent misrepresentation, and fraud arising from termination of franchise agreement; matter going to mediation.
Items 10, 11
Training & Operations
- Classroom training
- 23 hrs
- On-the-job training
- 16 hrs
- Training location
- Online
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- QuickBooks Pro
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Pro
Item 20 · call current owners
Franchisee Contacts
29 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
City Publications · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a City Publications franchise?
The total investment to open a City Publications franchise ranges from $46K – $270K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do City Publications franchise owners earn?
City Publications does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the City Publications FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the City Publications FDD and qualifies whose outlets they describe.
What is City Publications's franchise failure rate?
SBA 7(a) loan charge-off data is not available for City Publications (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many City Publications franchise locations are there?
As of their most recent FDD filing, City Publications has 35 total units in the United States, including 35 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is City Publications a good franchise to buy?
FranchiseVerdict rates City Publications as a D-grade franchise with a verdict score of 38 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent City Publications, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.