Will City Wide charge the Franchisee a fee for major upgrades or modifications to the software?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
IT Services will include minor Software upgrades and modifications; provided, however, City Wide reserves the right to determine when major upgrades or modifications are necessary and shall have the right to charge Franchisee a reasonable fee for the same.
If City Wide determines that a major upgrade or modification is necessary, Franchisee shall implement the Software change in a manner and time designated by City Wide.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide provides IT services to franchisees, including minor software upgrades and modifications. However, City Wide retains the right to determine when major upgrades or modifications are necessary and can charge the franchisee a reasonable fee for these major changes.
If City Wide decides that a major software upgrade or modification is needed, the franchisee is obligated to implement the change in the manner and timeframe specified by City Wide. This implies that franchisees do not have a choice in whether or not to implement these major changes, and they must comply with City Wide's directives.
In addition to potential fees for major software changes, the franchisee is responsible for the costs of all enterprise upgrades and replacements of equipment required to operate the software. This could represent a significant ongoing expense for franchisees, as they must maintain and update their technology infrastructure to meet City Wide's requirements. Franchisees should budget for these potential costs and discuss with City Wide what constitutes a 'reasonable fee' for major upgrades to better understand potential expenses.