What determines if City Wide will charge a fee for software upgrades or modifications?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
IT Services will include minor Software upgrades and modifications; provided, however, City Wide reserves the right to determine when major upgrades or modifications are necessary and shall have the right to charge Franchisee a reasonable fee for the same.
If City Wide determines that a major upgrade or modification is necessary, Franchisee shall implement the Software change in a manner and time designated by City Wide.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the company provides IT services to franchisees, which include minor software upgrades and modifications. However, City Wide retains the right to determine when major upgrades or modifications to the software are necessary. If City Wide deems a software change to be a major upgrade or modification, they have the right to charge the franchisee a reasonable fee for it.
This means that as a City Wide franchisee, you can expect to receive routine software updates as part of your IT services. However, if a significant overhaul or change to the software is required, City Wide can charge you an additional fee to cover the costs of that upgrade. The FDD does not define what constitutes a 'reasonable fee'.
It is important for prospective franchisees to understand that City Wide has the discretion to decide what constitutes a major upgrade or modification and to impose a fee for it. Franchisees are obligated to implement any software changes deemed necessary by City Wide in the manner and timeframe they designate. Therefore, it would be prudent for a potential franchisee to inquire about the typical frequency and estimated costs of major software upgrades to better anticipate these potential expenses.