What is the current monthly Information Technology Services Fee for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
The current Business Development Services Fee is $3,500 per month. This fee may vary based upon the terms of the Business Development Services Agreement.
- 3.7.5 National Technology Development Fee. Franchisee agrees to pay to Franchisor $1,864 per month for the costs associated with Franchisee's participation in Franchisor's design, development. testing and deployment technology capabilities utilized in the operations of the Franchised Business.
- 3.7.6 Information Technology Services Fee. Franchisee is required to use Franchisor's Information Technology Services for the first thirty-six (36) months commencing on the date this Agreement is sig
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 Information Technology Services for the first 36 months after signing the agreement. The current Information Technology Services Fee is $120 per month, but the FDD states that it may be greater depending on the level of services the franchisee elects. This fee does not include the cost of any hardware or software. The fee may also vary based on the terms of the IT Services Agreement.
This means that a new City Wide franchisee should budget at least $120 per month for IT services for the first three years of operation. However, this cost could increase if the franchisee chooses a higher level of service or if the terms of the IT Services Agreement dictate a different amount. It is important to note that this fee is in addition to the cost of any necessary hardware or software.
Franchisees should carefully review the IT Services Agreement to understand the full scope of services provided and the potential for additional costs. They should also inquire about the different levels of service available and the associated fees to make an informed decision about their IT needs. Understanding these costs upfront will help in accurately forecasting expenses and managing the financial aspects of the franchise.