For a City Wide franchise in its 11th month of operation, what is the minimum royalty fee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Months in Operation | Minimum Royalty Fee |
|---|---|
| 1-6 months | Actual Royalty Fee |
| 7-9 months | $750/mo. |
| 10-12 months | $1,150/mo. |
| 13-15 months | 1,550/mo. |
| 16-18 months | $2,000/mo. |
| 19-21 months | $2,450/mo. |
| 22-24 months | $2,900/mo. |
| 25 and all months | $3,350/mo. |
| thereafter |
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee in their 11th month of operation will have a minimum royalty fee of $1,150 per month. This fee structure is designed to help new franchisees as they start their business, with the minimum royalty fee increasing as the business matures.
Specifically, during the first 6 months, franchisees pay the actual royalty fee. From months 7-9, the minimum royalty fee is $750 per month. Months 10-12 see an increase to $1,150 per month. This tiered approach allows franchisees to gradually adjust to higher royalty payments as their business grows.
It's important for prospective City Wide franchisees to factor these increasing minimum royalty fees into their financial projections. Understanding the royalty fee schedule is crucial for managing cash flow and ensuring the long-term financial health of the franchise. Franchisees should also be aware that after the initial period, the minimum royalty fee continues to increase, reaching $3,350 per month after 25 months of operation.