What is the dependency between the Accounting Services Agreement and the 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. This requirement is outlined in the Accounting Services Agreement, which is included as Attachment L in the FDD.
The Accounting Services Fee is currently $1,500 per month, but the FDD states that this fee may be greater depending on the level of services the franchisee elects. The rate is subject to change based on the terms of the Accounting Services Agreement. This means that the specific services chosen by the franchisee directly impact the monthly fee, and any changes to the agreement could result in adjustments to the fee.
Prospective City Wide franchisees should carefully review Attachment L, the Accounting Services Agreement, to fully understand the scope of services provided, the potential for fee increases, and the terms and conditions associated with these mandatory accounting services. Understanding these details is crucial for budgeting and financial planning during the initial phase of operating the franchise.