What fees paid by City Wide franchisees contribute to the Marketing Fund?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
l business development fund for national, regional, and/or local marketing and national business development, public relations and marketing programs, marketing support materials, market research relating to the System, and production of signage, printed materials, and any similar materials derived from any such market research ("Marketing"), and will direct all such Marketing and national business development at its sole and absolute right over the concepts, materials, staffing, and media used. The Fund will consist of all amounts paid by Franchisee pursuant to Section 3.7.2(a) of this Agreement and similar fees paid by other franchisees operating CITY WIDE Franchised Businesses under the System. CITY WIDE is under no obligation, however, to expend amounts in the Fund at any specific time and may accrue amounts in the Fund from time to time.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees contribute to the Marketing Fund through a Marketing Fee. This Marketing Fee is up to one percent (1%) of the franchisee's monthly Gross Sales. The funds collected are used for research and development, media placement, creation of marketing and advertising materials, promotion of the franchise system, and development of the National Business Development Program.
The Marketing Fund is managed by City Wide and is intended to enhance the public recognition and acceptance of the City Wide brand. While City Wide aims to balance the promotion of the system with each franchisee's contribution, there is no guarantee that any specific franchisee will directly benefit from the marketing efforts. City Wide maintains the Marketing Fund in a separate trust account, ensuring it is not commingled with the company's other funds.
Prospective franchisees should note that participation in the Marketing Fund is mandatory, and the fee is a percentage of their gross sales, which can impact their profitability. Franchisees are also required to spend at least $1,200 annually on their own local advertising and promotion, as outlined in the Operating Manual, in addition to the Marketing Fee. Understanding how these fees are managed and allocated is crucial for assessing the potential return on investment in a City Wide franchise.