What fees must the transferee pay when transferring a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
on of any Transfer under this Section 13.4, Franchisee and the prospective transferee will jointly request that CITY WIDE inspect of the Location and of Franchisee's books and records. As a result of such inspection, CITY WIDE may prepare a list setting forth the necessary repairs, maintenance, or other upgrades of the Location which will be required before CITY WIDE approves the Transfer, and CITY WIDE may also require that Franchisee pay any additional fees due CITY WIDE which may discovered as a result of the inspection.
- 13.4.11 The transferee will execute the then-current form of franchise agreement, pay all required fees (including Initial Fees) and will provide such additional guaranties of its obligations under such franchise agreement as CITY WIDE may require.
- 13.4.12 A Transfer where there is (a) a change in Control of Franchisee or the Franchised Business or where there is a sale of Franchisee or all or a majority of the assets of Franchised Business, and (b) the Franchised Business is eligible for a Royalty Rebate, based upon the criteria set forth in the Royalty Rebate Program, Franchisee and the transferee shall split the Royalty Rebate on a pro rata basis based upon the number of months each owned the Franchise Business. For purposes of calculating the Gross Sales, the aggregate of the Gross Sales of Franchisee before the Transfer will be added to the Gross Sales generated by the transferee after the Transfer. If eligible, the Royalty Rebate will be paid as stated herein and in the Operating Manual.
- 13.5 Transfer Fee. In the event CITY WIDE approves a Transfer, Franchisee shall pay to CITY WIDE a transfer fee ("Transfer Fee") which is equal to Twenty Five Thousand Dollars ($25,000) and any applicable third-party broker fee. Such Transfer Fee will be in addition to any Initial Franchise Fee due and owing under the then-current form of franchise agreement.
- 13.6 Transfer by Franchisee to or among Owners. If the proposed Transfer is to or among Owners or to or among the spouse or domestic partner or children of an Owner and will not result in a loss of Control as set forth in Section 13.3 above, then the terms and conditions of Sections 13.4 and 13.5 will not apply to such Transfer.
- 13.7 Death or Disability.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a transferee must pay several fees when a franchise is transferred. The transferee will need to execute the then-current form of the franchise agreement and pay all required fees, including the initial franchise fee. They must also provide any additional guarantees of their obligations under the franchise agreement that City Wide may require.
In the event City Wide approves a transfer, the franchisee will pay City Wide a $25,000 transfer fee, in addition to any applicable third-party broker fees. This transfer fee is in addition to any initial franchise fee due under the current franchise agreement. The prospective transferee must also complete the initial training to City Wide's satisfaction and pay all fees associated with the training, as assessed by City Wide.
Prior to the transfer, the franchisee must pay all amounts due to City Wide and resolve any breaches of the agreement. City Wide may also require the transferee to guarantee the obligations of the franchisee under the agreement. City Wide may also conduct an inspection of the location and the franchisee's books and records, and as a result, may require necessary repairs, maintenance, or upgrades to the location before approving the transfer, as well as payment of any additional fees discovered during the inspection. These fees ensure that the transferee is fully committed to the City Wide system and meets all financial and operational requirements.