Can the Business Development Services Fee for a City Wide franchise vary?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.7.4 Business Development Services Fee. Franchisee is required to use Franchisor's Business Development Services to assist Franchisee in prospecting
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Business Development Services Fee can vary. The standard fee is currently $3,500 per month. However, the document specifies that this fee may change based on the terms outlined in the Business Development Services Agreement.
This variability means that prospective franchisees need to carefully review the Business Development Services Agreement to understand the specific conditions under which their fee might differ from the standard rate. Factors influencing the fee could include the scope of services provided, the size or location of the franchise, or any customized support required.
It is important for potential City Wide franchisees to discuss the Business Development Services Fee with the franchisor during their due diligence. Understanding the potential range of fees and the factors that could cause them to fluctuate is crucial for accurate financial planning and assessing the overall profitability of the franchise.