Is ADP Payroll Services currently a Required Supplier for City Wide franchisees?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
From time to time as set forth in the Operating Manual, CITY WIDE may designate suppliers on the Approved Suppliers List as required suppliers ("Required Suppliers") from whom you must purchase inventory, products, services or other items and services. Currently, on the list of Required Suppliers is ADP Payroll Services. You may not use payroll services from any other provider. We, or our affiliate, is a Required Supplier for each of your Technology Systems (defined below) and for the IT Services (defined below).
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–28)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, ADP Payroll Services is currently a required supplier. City Wide franchisees must use ADP Payroll Services and are prohibited from using any other payroll service provider. City Wide also mandates that franchisees use City Wide or its affiliate as a required supplier for Technology Systems and IT Services.
City Wide maintains a list of approved suppliers and may designate some as 'Required Suppliers.' This means franchisees must purchase specific inventory, products, or services from these designated suppliers. City Wide retains the right to modify the Approved Suppliers List and the list of Required Suppliers. Any changes to these lists will be communicated to all franchisees.
This requirement ensures standardization and potentially allows City Wide to negotiate favorable terms or rebates with suppliers. In 2024, City Wide received $240,946 in total rebates from various suppliers based on franchisee purchases. However, franchisees should be aware that City Wide also reserves the right to derive revenues from required purchases or leases made by franchisees from approved suppliers.