Besides the initial franchise fee, what other initial fees must be paid to City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
in this ITEM.
ITEM 5 INITIAL FEES
Initial Fees
Upon your execution of the Franchise Agreement, you must pay to CITY WIDE the initial franchise fee ("Initial Franchise Fee") of $70,000 for the right to operate one CITY WIDE franchise. The Initial Franchise Fee is imposed uniformly on all franchisees (including franchisees who purchase existing territories). You must also pay an initial training fee ("Initial Training Fee") in the amount of $7,500.
To honor those men and women who have served in the U.S. military, the Veterans Transition Franchise Initiative, known as "VetFran," was developed to help those individuals' transition to civilian life. This initiative is a voluntary effort of International Franchise Association (IFA) member-companies and is designed to encourage franchise ownership by offering financial incentives to honorably discharged veterans. CITY WIDE offers a ten percent (10%) discount of the Initial Franchise Fee for the first Franchised Business to individuals who qualify under VetFran.
In addition to the Initial Franchise Fee and Initial Training Fee, upon your execution of the Franchise Agreement, you must pay to CITY WIDE an initial territory fee ("Initial Territory Fee"), which is based upon your Designated Territory's population (as set forth in Attachment B to the Franchise Agreement), as set forth in the following chart:
| TERRITORY SIZE | INITIAL TERRITORY FEE |
|---|---|
| Less than 1,000,000 population | $15,000 |
| 1,000,001 to 1,499,999 | $30,000 |
| population | |
| 1,500,000 – | $35,000 |
| 1,999,999 | |
| 2,000,000 | $50,000 |
| and above |
All population determinations shall be based upon the latest United States Census information available for the proposed Designated Territory, including any data available at https://www.census.gov. The determination of a Designated Territory's size and the Initial Territory Fee to be paid for such Designated Territory shall be at the sole and absolute right of CITY WIDE. The Initial Territory Fee is deemed to be fully earned and non-refundable under any circumstances.
A technology provisioning fee ("Technology Provisioning Fee") of $12,500 is payable to CITY WIDE prior to the opening of the Franchised Business. The Technology Provisioning Fee is payment for the establishment of the CITY WIDE proprietary operating software systems.
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, in addition to the initial franchise fee of $70,000, franchisees must also pay an initial training fee of $7,500. Furthermore, an initial territory fee is required, the amount of which varies based on the population of the designated territory. Finally, a technology provisioning fee of $12,500 is payable before opening the franchised business.
The initial territory fee is determined by City Wide based on the latest United States Census information for the designated territory. The fee ranges from $15,000 for territories with a population of less than 1,000,000 to $50,000 for territories with a population of 2,000,000 and above. The determination of the territory size and the corresponding fee is at the sole discretion of City Wide.
These fees, along with the initial franchise fee, are collectively referred to as "Initial Fees" by City Wide. In the most recent fiscal year, the total initial fees collected by City Wide ranged from $105,000 to $140,000, depending on the size of the franchisee's territory. It is important to note that the initial franchise fee and initial territory fee are generally non-refundable, except under specific conditions outlined in the Franchise Agreement, such as termination by City Wide due to the franchisee's qualifications or financing issues.
For veterans who qualify under the VetFran program, City Wide offers a 10% discount on the initial franchise fee for the first franchised business. This initiative aims to support veterans transitioning to civilian life by encouraging franchise ownership through financial incentives.