What is the amount of the Transfer Fee that a City Wide franchisee must pay to City Wide upon approval of a transfer?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
s eligible for a Royalty Rebate, based upon the criteria set forth in the Royalty Rebate Program, Franchisee and the transferee shall split the Royalty Rebate on a pro rata basis based upon the number of months each owned the Franchise Business. For purposes of calculating the Gross Sales, the aggregate of the Gross Sales of Franchisee before the Transfer will be added to the Gross Sales generated by the transferee after the Transfer. If eligible, the Royalty Rebate will be paid as stated herein and in the Operating Manual.
- 13.5 Transfer Fee. In the event CITY WIDE approves a Transfer, Franchisee shall pay to CITY WIDE a transfer fee ("Transfer Fee") which is equal to Twenty Five Thou
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee must pay a Transfer Fee of $25,000 to City Wide if City Wide approves a transfer of the franchise. This fee is in addition to any applicable third-party broker fees and the Initial Franchise Fee due under the then-current franchise agreement.
This means that if a City Wide franchisee decides to sell their franchise to a new owner, they will incur this $25,000 fee, plus any broker fees, payable to City Wide for approving the transfer. This fee is separate from the initial franchise fee that the new owner will also have to pay.
However, the FDD states that if the transfer is to or among current owners, or to their immediate family members, and does not result in a loss of control, then this transfer fee will not apply. This provides some flexibility for internal restructuring or family succession within the franchise ownership.
Prospective franchisees should consider this transfer fee as a potential cost when planning their exit strategy or considering future ownership changes. It is important to factor this fee into any financial projections related to selling the franchise.