What is the current monthly Accounting Services Fee for City Wide franchisees?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee's monthly Gross Sales, or as outlined in the Operating Manual. Franchisee must make all such payments to
the CITY WIDE Marketing Fund ("Fund"). CITY WIDE or its designee may expend amounts in the Fund by the terms of Section 10 of this Agreement.
- (b) Local Advertising. Franchisee must spend at least $1,200 annually on Franchisee's own advertising and promotion as outlined in the Operating Manual.
- 3.7.3 Accounting Services Fee. Franchisee is required to use Franchisor's financial reporting, bookkeeping and other accounting services for the first twelve (12)
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees are required to use City Wide's financial reporting, bookkeeping, and other accounting services for the first 12 months after completing the initial training program. The current Accounting Services Fee is $1,500 per month, but the FDD states that it may be greater depending on the level of services the franchisee elects. This rate is subject to change based upon the terms of the Accounting Services Agreement, which is included as Attachment L to the Franchise Agreement.
This mandatory accounting service has significant implications for new City Wide franchisees. It ensures that franchisees adhere to City Wide's financial reporting standards and receive support during their initial months of operation. However, franchisees need to budget for this $1,500 monthly fee, which could increase based on the services they require. It is important to review Attachment L, the Accounting Services Agreement, to understand the full scope of services and potential cost increases.
Franchisees should also note that this fee is separate from other recurring fees, such as the Royalty Fee, Marketing Fee, National Technology Development Fee, and others outlined in Section 3.7 of the Franchise Agreement. Understanding the full scope of mandatory services and associated fees is crucial for assessing the financial viability of a City Wide franchise. Prospective franchisees should discuss the specifics of the Accounting Services Agreement with City Wide to clarify any uncertainties and plan accordingly.