Who determines the fees associated with the initial training required of System franchisees for City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ce period). In the latter case, all of Franchisee's obligations shall remain in full force and effect during the Interim Period as if this Agreement had not expired, and all obligations and restrictions imposed on Franchisee upon expiration of this Agreement shall be deemed to take effect upon termination of the Interim Period.
SECTION 3. Franchise Fees and Ongoing Payment Obligations of Franchisee
3.1 Initial Fees. Contemporaneously with Franchisee's execution of this Agreement, Franchisee must pay CITY WIDE an initial franchise fee ("Initial Franchise Fee") of Seventy Thousand Dollars ($70,000); plus, an initial training fee ("Initial Training Fee") of Seven Thousand Five Hundred Dollars ($7,500) plus an initial territory fee ("Initial Territory Fee") in the amount set forth on Attachment B plus a Technology Provisioning Fee ("Technology Provisioning Fee") of Twelve Thousand Five Hundred Dollars ($12,500) as set forth below. Initial Franchise Fee, Initial Training Fee, Initial Territory Fee and Technology Provisioning Fee are collectively referred to herein as the "Initial Fees."
The determination of a Designated Territory's size and the Initial Territory Fee to be paid for such Designated Territory shall be at the sole and absolute right of CITY WIDE.
Franchisee must pay by certifi
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the initial training fee is determined by City Wide. Franchisees must pay an initial training fee of $7,500, in addition to the initial franchise fee of $70,000, the initial territory fee, and a technology provisioning fee of $12,500. These fees are collectively referred to as the "Initial Fees."
City Wide also determines the initial territory fee. The size of the designated territory is also determined by City Wide at its sole and absolute right. The franchisee must pay these fees via certified or cashier's check, or by other payment methods designated by City Wide.
It is important to note that these initial fees are generally nonrefundable once paid, with a few exceptions. If City Wide terminates the agreement within 15 days of receiving all necessary data after evaluating the franchisee's qualifications, the franchisee will receive a refund of the initial fees, less an evaluation fee that will not exceed $2,500. Similarly, if the franchisee cannot provide adequate proof of financing or sufficient assets within 30 days of the agreement's execution, City Wide may terminate the agreement and refund the initial fees, less $2,500 for expenses incurred by City Wide. If a franchisee or their designees do not successfully complete the required initial training program, City Wide may terminate the agreement and refund the initial fees, less training and other expenses incurred by City Wide, which shall not exceed $10,000.