To whom are the additional funds paid for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (21) Additional Funds: This is the amount of working capital projected as sufficient to cover operating expenses for the first three months.
You may need additional working capital beyond the first three months, which is not included in the range in the above table.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–24)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the additional funds, estimated between $75,000 and $150,000, are paid to various providers, suppliers, and employees. These funds are intended to cover the operating expenses for the first three months of operation.
It is important to note that this is just an estimate, and a new City Wide franchisee may require additional working capital beyond the initial three-month period. The FDD advises prospective franchisees to carefully review these estimates with a business advisor before making any decisions to purchase the franchise.
Understanding where these additional funds are allocated is crucial for budgeting and financial planning. Franchisees should identify potential providers, suppliers, and staffing needs to anticipate actual costs. It is also important to establish relationships with these entities to ensure smooth operations from the outset.