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Business Description

To sunplify the language m this Disclosure Document, the words "we franchisor, CITY PUBLICATIONS FRANCHISE GROUP, INC The word "you" means the person to whom we award the franchise If you are a corporation, partnership, limited hability company or other busmess entity, certam provisions of this Disclosure Document also apply to your owners and will be noted We were mcorporated m the State of Georgia on December 31, 2002 Our prmcipal business address is 1300 Parkwood Circle SE, Suite 100, Atlanta, Georgia 30339 We do busmess only under the name “City Publications

Prior Experience

We were formed solely for the purpose of offermg franchises and supporting franchisees who operate busmesses in conjunction with the trademark "CITY PUBLICATIONS" and certain associated logos (collectively referred to as the "Marks"), and m accordance with our "System" which is described m greater detail m our Franchise Agreement, attached as Exhibit C to this Disclosure Document We refer to these busmesses as "CITY PUBLICATIONS Busmesses" We refer to the CITY PUBLICATIONS Busmess you will operate as the "Franchised Busmess" Each CITY PUBLICATIONS Busmess provides high quality direct mail, email and mobile marketing, advertismg targeted to the affluent homeowner You may operate and admimster the Franchised Busmess from a home offlce space of approximately 100 to 200 square feet Typically, you will be located within near the area you are servicmg

Business Offered

We have offered franchises smce our formation m 2002 We do not and have not previously offered franchises m any other Ime of busmess We do not own or operate a busmess of the type bemg franchised, however, as descnbed below, our affiliate, through common ownership, operates one such busmess m Atlanta, Georgia We are not engaged m any other Ime of busmess

Initial Fees

The initial Franchise Fee vanes dependmg upon charactenstics of the territory of the franchise such as the availability of mailing lists for residents withm the territory, home values and demographics The standard Franchise Fee is $89,000 The maximum Franchise Fee is $250,000 Assummg a territory consistmg of approximately 100,000 homes of an appropnate market value, the Franchise Fee would approximate $40,000 A second market with 25,000- 50,000 qualified homes is $50,000 For fi-anchisees m California, this fee is fully due and payable when we have completed all of our pre- openmg obligations to you and you are ready to open your fi-anchised busmess See state law appendix m Exhibit H to this Disclosure Document for any applicable state laws affectmg the due date of the mitial fee Franchise fees paid m 2018 were m a range fi-om $89,000 to $99,000, dependmg on the size of the teritory The intial Franchise Fee is non-refundable You pay us or our affiliate no other fees or payments for services or goods before your busmess opens

Financing

We do not offer direct or indirect financing We and our affiliates do not receive any direct or indirect payments or other consideration fi-om any person for the placement of financmg with the lender We do not guarantee your note, lease or obligations

Franchisee Revenue and Profit

The FTC Franchise Rule permits a fi-anchisor to provide information about the actual or potential financial performance of its fraanchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is mcluded m the disclosure document Financial performance information that differs from that included m Item 19 may be given only if (1) a fraanchisor provides the actual records of an existmg outlet you are considermg buymg, or (2) a franchisor supplements the information provided m this Item 19, for example, by providmg information about possible performance at a particular location or under particular circumstances