Can the Annual Revenue Per Capita Growth rate for a City Wide franchise be adjusted?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
er franchisees, from outlets that CITY WIDE or its affiliates own, or from other channels of distribution or competitive brands that CITY WIDE or its affiliates control.
CITY WIDE will not operate or license others to operate a CITY WIDE Franchised Business using the Marks within your Designated Territory unless you do not meet the annual revenue per capita ("Annual Revenue Per Capita Growth") in every year during the term of your Franchise Agreement.
Specifically, you will be required to grow the gross revenues generated by your CITY WIDE Franchised Business to no less than $0.20 per person per year in your Designated Territory. The rate of $0.20 is the current rate. On an annual basis beginning of fiscal year any metric that we use to measure the Annual Revenue Per Capita Growth may be adjusted based upon the increase in the Consumer Price Index as currently measured by the Index as defined below, but not to exceed 3%. For purposes of this section, "Index" shall mean (i) the increase in the Consumer Price Index for all Urban Consumers, U.S. City Average (1982-84 = 100) published by
Source: Item 12 — TERRITORY (FDD pages 36–39)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Annual Revenue Per Capita Growth rate can be adjusted. City Wide requires franchisees to grow their gross revenues to no less than $0.20 per person per year in their Designated Territory. This rate of $0.20 is the current rate, but City Wide reserves the right to adjust this metric annually, beginning of fiscal year, based on the increase in the Consumer Price Index (CPI), but the adjustment cannot exceed 3%.
This adjustment is tied to the Consumer Price Index for all Urban Consumers, U.S. City Average (1982-84 = 100), published by the Bureau of Labor Statistics of the United States Department of Labor. When City Wide increases the rate, they will notify the franchisee, and the increase will be documented in the Manual. This means that as the cost of living increases, the revenue expectations for franchisees may also increase, but with a cap of 3% annually.
For a prospective City Wide franchisee, this means that the initial revenue targets are subject to change, albeit with a limited upward adjustment. It is important to monitor the Consumer Price Index and understand how it might affect the revenue goals. Franchisees should also pay close attention to updates in the City Wide manual for any changes to the Annual Revenue Per Capita Growth rate. This adjustment mechanism is designed to account for economic changes and maintain the franchise's financial viability, but it also places the onus on the franchisee to adapt to these changes to avoid breaching the Franchise Agreement.