What is the definition of 'Annual Revenue Per Capita Growth' for City Wide franchisees?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Term or any Successor Term as outlined in the Manual. Franchisee shall not change the Location without CITY WIDE's approval. Franchisee shall give CITY WIDE at least thirty (30) days prior written notice of any such change and CITY WIDE shall have thirty (30) days within which to approve such Location and the proposed décor and signage. If CITY WIDE does not disapprove of such Location, décor or signage within such thirty (30) day period, same shall be deemed disapproved.
- 6.5 To retain rights to the Designated Territory, Franchisee must meet the annual revenue per capita growth ("Annual Revenue Per Capita Growth") in every year in the Term of the Agreement, as published on uscensus.gov. Specifically, Franchisee will be required to grow the gross revenues generated by the Franchised Business to no less than $0.20 per person per year. Franchisees must meet this requirement each year; however, CITY WIDE will measure this requirement using a three-year rolling average. CITY WIDE will measure Franchisee's Annual Revenue Per Capita Growth by calculating the average revenues generated by Franchisee's Franchised Business in the preceding two (2) years of operations. Each year thereafter, CITY WIDE will measure Franchisee's Annual Revenue Per Capita Growth by calculating the average revenues generated by Franchisee's Franchised Business in the immediately preceding two (2) years of operations. Each year thereafter, CITY WIDE will measure Franchisee's Annual Revenue Per Capita Growth by calculating the average revenues generated by Franchisee's Franchised Business in the immediately prec
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, Annual Revenue Per Capita Growth is a key metric franchisees must meet to retain their designated territory rights. City Wide requires franchisees to grow their gross revenues by at least $0.20 per person per year, based on population data from uscensus.gov.
This growth is not assessed annually in the first few years. City Wide calculates this requirement using a three-year rolling average. After the first two years of operation, City Wide measures the Annual Revenue Per Capita Growth by averaging the revenues generated by the franchisee's business over the preceding two years.
Failure to meet the Annual Revenue Per Capita Growth requirement constitutes a material breach of the franchise agreement. If a franchisee fails to meet this growth target, City Wide has the right to reduce the size of the franchisee's territory, grant additional franchises within the territory, or even terminate the agreement. However, the franchisee is given a one-year period to correct the breach.