What is the estimated range for utility and security deposits for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
TIMATED INITIAL INVESTMENT**
YOUR ESTIMATED INITIAL INVESTMENT FRANCHISE AGREEMENT
| Type of Expenditure1 | Amount | payment | When Due | is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee2 | $70,000 | Lump Sum | At Signi |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–24)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the estimated initial investment for utility and security deposits ranges from $0 to $3,000. These deposits are typically arranged before opening and are paid to the landlord and utility companies.
These deposits cover expenses such as a lease deposit, which is often the last month's rent, and utility deposits required by utility companies for services like telephone, gas, and electricity. The FDD notes that these deposits may be refundable based on agreements with the landlord and utility companies.
Prospective franchisees should budget for this expense when planning their initial investment. The actual amount required will depend on the specific location and the policies of the local utility providers and landlord. It is important to clarify the terms of these deposits, including their refundability, to manage cash flow effectively during the initial phase of the business.