What fees must a City Wide franchisee pay if they want to transfer their franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | reasonable attorneys’ fees, incurred by CITY WIDE subsequent to termination or expiration in connection with obtaining injunctive or other relief under the Franchise Agreement; provide all signage to CITY WIDE; and take further action as may be required by the Operating Manual or reasonably requested by CITY WIDE; and, if due to your default, forfeit any royalty rebate. | |
| j. Assignment of contract by | Section 13 | No restriction on CITY WIDE’s right to assign. |
| Franchisor | ||
| k. “Transfer” by you – definition | Section 13 | Includes transfer of contract or assets or change in ownership. |
| l. Franchisor’s approval of transfer | Section 13 | CITY WIDE has the right to approve all transfers, |
| by you | but will not unreasonably withhold approval. | |
| m. Conditions for Franchisor’s approval of transfer | Section 13 | You must ask CITYWIDE at least 60 days before to approve a transfer; you must pay a Transfer Fee equal to $25,000 and pay any applicable third-party broker fee; you must be in compliance with the Franchise Agreement and Operating Manual; transferee must meet CITY WIDE’s standards, agree to make required upgrades, sign the current form of franchise agreement, and pay all required fees (including Initial Fees). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–47)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their franchise must meet several conditions, including financial obligations. Specifically, the franchisee must pay a Transfer Fee of $25,000 to City Wide. In addition to this fee, the franchisee is responsible for paying any applicable third-party broker fees associated with the transfer.
Beyond the explicit fees, the franchisee must also be in full compliance with the Franchise Agreement and the Operating Manual at the time of the transfer. The prospective transferee must also meet City Wide's standards for franchisees. This includes agreeing to make any required upgrades to the business and signing the current form of the franchise agreement. The transferee is also responsible for paying all required fees, including the initial franchise fee, which can be a substantial investment.
These transfer conditions are fairly standard in the franchise industry, as franchisors typically want to ensure that any new franchisee meets their operational and financial criteria. The $25,000 transfer fee is in line with what many established franchise systems charge to cover their administrative and legal costs associated with the transfer process. Franchisees should carefully consider these costs and conditions when planning to sell their City Wide franchise.