Who determines the sufficiency of the proof of financing or assets provided by a City Wide franchisee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
hisee previously or contemporaneously paid CITY WIDE under any Deposit Agreement concerning the Franchised Business
- 3.2 Technology Provisioning Fee. The Technology Provisioning Fee of $12,500 includes payment for the set-up of the CITY WIDE enterprise software. This fee does not include the cost to procure hardware, which you must purchase from Franchisor, or the required monthly licensing fees paid by Franchisee as incurred.
- 3.3 Proof of Sufficient Assets. Within thirty (30) days after the execution of this Agreement, Franchisee must obtain, secure and furnish adequate proof of financing or furnish proof of the existence of assets in Franchisee's sole control, that is sufficient and in acceptable form to CITY WIDE, to fully and completely discharge the obligations of this Agreement (except Franchisee's continuing Royalty Fee and Marketing Fee contributions, and any other continuing obligation Franchisee owes CITY WIDE during the term of this Agreement, as defined and outlined in this Agreement). CITY WIDE will have the sole and absolute right to determine the sufficiency of all such proof of financing or assets. CITY WIDE will not begin training until Franchisee satisfies this requirement.
- 3.4 Refunds. The Initial Fees will be deemed fully earned upon their payment and are nonrefundable,
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide has the sole and absolute right to determine whether a franchisee's proof of financing or assets is sufficient. Within 30 days of signing the franchise agreement, a City Wide franchisee must provide adequate proof of financing or assets in their sole control in a form acceptable to City Wide. This proof must be sufficient to cover all obligations under the agreement, excluding ongoing royalty and marketing fees.
This requirement ensures that franchisees have the financial capacity to meet their initial obligations. City Wide will not commence training until this requirement is met, highlighting its importance. The initial fees paid by the franchisee are considered fully earned upon payment and are generally nonrefundable, with a limited exception if City Wide terminates the agreement within 15 days after evaluating the franchisee's qualifications, in which case a portion of the fees may be refunded, less an evaluation fee not exceeding $2,500.
This provision protects City Wide by ensuring franchisees are financially stable before starting operations. However, it also places the onus on the franchisee to provide compelling evidence of their financial strength within a relatively short timeframe after signing the agreement. Prospective franchisees should be prepared to gather and present this documentation promptly to avoid delays in training and potential complications with the franchise agreement.