Where can details about the Royalty Rebate program be found for City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
h order as CITY WIDE may designate from time to time. Franchisee agrees that Franchisee may not designate an order for application of any fees different from that which CITY WIDE designates. Franchisee expressly acknowledges and agrees that CITY WIDE may accept fees Franchisee pays under different instructions without any obligation to follow such instructions, even if Franchisee makes such payment conditional on CITY WIDE following such instructions. This provision may be waived only by a written agreement signed by CITY WIDE, which written agreement must be separate and distinct from the check or other document constituting payment.
3.14 Royalty Rebate Program. Franchisor, at its sole and absolute right, may offer a rebate of a certain percentage of Royalty Fees paid by Franchisee ("Royalty Rebate") and administer a royalty rebate program ("Royalty Rebate Program") to eligible franchisees. The Royalty Rebate Program includes, but is not limited to, the following guidelines, which guidelines are supplemented by the Operating Manual and are subject to change.
3.14.1 If the Franchised Business has verifiable Gross Sales generated solely in the Designated Territory in any calendar year of $10,000,000 or greater, Franchisee will receive a one percent (1%) Royalty Rebate on Royalty Fees paid in that calendar year.
3.14.2 A qualifying rebate for any qualifying calendar year shall be made by CITY WIDE to Franchisee no later than the close of the second quarter of the following calendar year. CITY WIDE may deduct any amounts that Franchisee owes CITY WIDE, and CITY WIDE will have no obligation to remit any Royalty Rebates if the Franchise Agreement is terminated or expired at the time the Royalty Rebate is to be paid.
3.14.3 Each designated territory granted to Franchisee (if Franchisee is granted more than one) must qualify individually and cannot combined with other designated territories owned by Franchisee or its affiliate.
3.14.4 Franchisee must re-qualify for the Royalty Rebate Program each year for each Designated Territory. There is no carryover of eligibility for the Royalty Rebate from one calendar year to the next, nor is there any carryover of eligibility for any designated territory in any manner.
3.14.5 National Accounts and the corresponding Royalty Fees paid by Franchisee are included in the Royalty Rebate Program and the calculation for eligibility for the Royalty Rebate. Except as stated in the Royalty Rebate Program, benefits described in Section 3.14 are personal to Franchisee and not transferrable or assignable.
3.14.6 Franchisee must be in good standing under all agreements with CITY WIDE and its affiliate and not be in breach of any term of this Agreement beyond any cure period at the end of the calendar year for which the Royalty Rebate is measured nor at the time the Royalty Rebate is scheduled to be paid. If, at the time the Royalty Rebate is owed to Franchisee and Franchisee has an outstanding balance due to the Franchisor or its affiliates, the Franchisor shall have the right to offset any amount owed to the Franchisor or its affiliates against any the Royalty Rebate owed to Franchisee.
SECTION 4. Duties and Covenants of Franchisor And Training
CITY WIDE agrees to provide Franchisee with the services set forth below. Franchisee and CITY WIDE agree that CITY WIDE may contract or arrange with third parties, including a Representative (as hereinafter defined) appointed by CITY WIDE under Section 16 of this Agreement, to provide some or all services if those services are of the promised quantity and quality.
4.1 Initial Training. Initial training is required for all new CITY WIDE franchisees, including new franchisees entering the CITY WIDE system through a transfer of a Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, details regarding the Royalty Rebate Program can be found in Item 22, which pertains to contracts. Specifically, section 3.14 outlines the Royalty Rebate Program. The FDD mentions that the guidelines are further supplemented by the Operating Manual and are subject to change.
The Royalty Rebate Program offers eligible City Wide franchisees the possibility of receiving a rebate on a percentage of the royalty fees they've paid. To qualify, a franchisee's business must generate verifiable gross sales of $10,000,000 or greater solely within their designated territory in any calendar year. If this threshold is met, the franchisee will receive a 1% Royalty Rebate on the royalty fees paid during that calendar year.
The rebate is typically paid out by City Wide no later than the close of the second quarter of the following calendar year. However, City Wide may deduct any amounts the franchisee owes them, and no rebate will be issued if the Franchise Agreement is terminated or expired at the time of payment. Each designated territory must qualify individually, and eligibility does not carry over from year to year or across different territories owned by the same franchisee. National Accounts and their corresponding royalty fees are included in the Royalty Rebate Program calculation. Franchisees must also be in good standing with City Wide and not in breach of any agreements to be eligible for the rebate. The FDD also mentions that if a franchise is transferred, the royalty rebate will be split on a pro rata basis between the franchisee and the transferee based on the number of months each owned the franchise business, and if eligible, the Royalty Rebate will be paid as stated in the Operating Manual.