According to the City Wide agreement, how is the IT Services Fee paid?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Pricing. Franchisee agrees to pay to City Wide the fee structure, as set forth on Exhibit A, attached hereto and incorporated herein, per month per Technology System ("IT Services Fee"). The IT Services Fee shall be paid in the same way Franchisee remits Royalties and other fees to City Wide and will vary based upon peripheral components selected. The IT Services Fee may be increased based on City Wide's then current published rates. The IT Services Fee and any other amounts due to City Wide hereunder shall be subject to the same late charges and interest as Royalties as set forth in the Franchise Agreement.
Unless otherwise provided in the Operating Manual, although calculated on a monthly basis, Franchisee must pay CITY WIDE the Royalty Fees and Marketing Fees and other amounts due to CITY WIDE under this Agreement, fully close monthly financial statements and submit any reports due CITY WIDE under this Agreement every month, on or before the tenth (10th) day of each month.
All such Royalty Fees, Marketing Fees and other amounts due shall be tendered to CITY WIDE via ACH electronic withdrawal on or before their respective due dates.
If any report is not made or any fee or any other amount due under this Agreement is not delivered or paid to CITY WIDE on or before the date due, Franchisee must pay the greater of Thirty Dollars ($30) plus interest at the highest rate of interest then permitted by applicable law of the state where the Franchised Business is located for each day such amount is past due.
Such nonpayment or non-delivery will be considered a material breach of this Agreement.
CITY WIDE has the right to establish reasonable procedures for verifying figures and collecting Royalty Fees, Marketing Fees, and all other recurring fees.
CITY WIDE will apply for Franchisee's payments under this Section 3 to Franchisee's obligations to CITY WIDE in such order as CITY WIDE may designate from time to time.
Franchisee agrees that Franchisee may not designate an order for application of any fees different from that which CITY WIDE designates.
Franchisee expressly acknowledges and agrees that CITY WIDE may accept fees Franchisee pays under different instructions without any obligation to follow such instructions, even if Franchisee makes such payment conditional on CITY WIDE following such instructions.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the IT Services Fee is paid in the same way a franchisee remits royalties and other fees to City Wide. The amount of the IT Services Fee will vary based upon peripheral components selected. The IT Services Fee, along with any other amounts due to City Wide, are subject to the same late charges and interest as royalties, as outlined in the Franchise Agreement.
Unless specified otherwise in the Operating Manual, City Wide franchisees must pay royalties, marketing fees, and any other amounts due to City Wide under the agreement on or before the 10th day of each month. These payments are calculated monthly, and franchisees must also fully close their monthly financial statements and submit any required reports to City Wide by this date. All such fees must be tendered to City Wide via ACH electronic withdrawal on or before their respective due dates.
If a City Wide franchisee fails to make a report or deliver any fee or amount due by the specified date, they must pay a late fee. This fee is the greater of $30 plus interest at the highest rate permitted by applicable law in the state where the franchised business is located, for each day the amount is past due. Such nonpayment or non-delivery will be considered a material breach of the agreement.
City Wide has the right to establish reasonable procedures for verifying figures and collecting Royalty Fees, Marketing Fees, and all other recurring fees. City Wide will apply for Franchisee's payments under this Section 3 to Franchisee's obligations to CITY WIDE in such order as CITY WIDE may designate from time to time. Franchisee agrees that Franchisee may not designate an order for application of any fees different from that which CITY WIDE designates. Franchisee expressly acknowledges and agrees that CITY WIDE may accept fees Franchisee pays under different instructions without any obligation to follow such instructions, even if Franchisee makes such payment conditional on CITY WIDE following such instructions.