What is the definition of the '2024 Quartile Reporting Period' for City Wide franchisees?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) As of December 31, 2024, CITY WIDE had 98 CITY WIDE franchisees operating in the CITY WIDE System (including three franchised outlets owned by CITY WIDE's principals). Of the total number of CITY WIDE franchisees operating, 93 CITY WIDE franchisees met all of the following criteria ("2024 Quartile Reporting Criteria"): each CITY WIDE franchise was operated under a standard Franchise Agreement, had been open and operating for at least one full 12-month period by December 31, 2024 ("2024 Quartile Reporting Period"), had submitted required Royalty Fee reports, and had operated continuously during the period between January 1, 2024, and December 31, 2024. In addition, during the 2024 Quartile Reporting Period, CITY WIDE had 85 CITY WIDE franchisees that had been operating at least 24 full months, 69 CITY WIDE franchisees that had been operating at least 36 full months, 66 CITY WIDE franchisees that had been operating at least 48 months, and 60 CITY WIDE franchises that had been operating at least 60 months. The results of the remaining CITY WIDE franchisee did not satisfy one or more of the Quartile Reporting Criteria. All CITY WIDE franchisees that satisfied the Quartile Reporting Criteria are included in this table.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 48–58)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the '2024 Quartile Reporting Period' is defined as the full 12-month period ending December 31, 2024. To meet the '2024 Quartile Reporting Criteria', a City Wide franchisee must have been operating under a standard Franchise Agreement, been open for at least one full 12-month period by December 31, 2024, submitted the required Royalty Fee reports, and operated continuously between January 1, 2024, and December 31, 2024.
City Wide uses this '2024 Quartile Reporting Period' to evaluate the financial performance of its franchisees and categorize them into quartiles based on their gross sales. These quartiles are then used to present financial performance data, such as monthly gross sales and net royalties, in Tables 2 through 5 of Item 19. This allows prospective franchisees to see a range of performance levels within the City Wide system.
It's important to note that not all franchisees meet the '2024 Quartile Reporting Criteria'. For example, the FDD states that out of 98 franchisees, 93 met the criteria. The financial results of franchisees who do not meet these criteria are excluded from the quartile-based financial performance representations. This means that the data presented may not be representative of the entire City Wide franchise system. A prospective franchisee should consider these criteria when evaluating the financial performance representations and understand that their own results may vary.
City Wide also uses an 'Average 2024 Gross Sales Reporting Period' which has the same timeframe as the '2024 Quartile Reporting Period' (January 1, 2024 to December 31, 2024), but has slightly different criteria. A total of 93 out of 99 franchisees met the 'Average 2024 Gross Sales Reporting Criteria'.