Does the FDD state that purchasing a City Wide franchise guarantees success?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
I understand that a) entry into any business venture necessarily involves some unavoidable risk or loss or failure; b) while the purchase of a franchise may improve the chances for success, the purchase of a City Wide Franchise or any other franchise is a speculative investment; c) investment beyond that outlined in the Franchise Disclosure Document may be required to succeed; d) there exists no guaranty against possible loss or
failure in this or any other business; and e) the most important factors in the success of any City Wide Franchise, including the one to be operated by me, are my personal business skills, which include marketing, sales, and management, and require sound judgment and extremely hard work.
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, purchasing a franchise does not guarantee success. The FDD explicitly states that while franchising may improve the chances of success, it remains a speculative investment. Prospective franchisees should be aware that additional investment beyond the initial costs outlined in the FDD may be necessary to achieve success.
The FDD emphasizes that there is no guarantee against potential losses or business failure. The document highlights that the most critical factors determining the success of a City Wide franchise are the franchisee's personal business skills, including marketing, sales, and management abilities, as well as sound judgment and a strong work ethic.
This disclosure is a standard practice in franchising, as the success of any franchise is heavily dependent on the individual franchisee's efforts and capabilities, as well as external market conditions. City Wide is upfront about the risks involved and the importance of the franchisee's role in driving the business forward. This aligns with the FTC's franchise rule, which requires franchisors to disclose such information to potential franchisees.