For a City Wide franchise in operation for 14 months, what is the minimum monthly royalty fee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
onal Business Development Business Program at any time upon written notice to Franchisee.
If Franchisee provides services to a National Account, Franchisee must carry the types and coverages of insurance required by each National Account Contract and Franchisee is solely responsible to ensure that any subcontractors Franchisee uses to perform the services to a National Account also carries the required types and coverages of insurance.
- 3.7 Recurring Fees. Beginning on the first day that the Franchised Business is open for business to the public as determined by CITY WIDE and continuing through the Term of this Agreement, Franchisee must pay CITY WIDE the following recurring fees without offset, credit or deduction of any nature:
- 3.7.1 Royalty Fee. A monthly royalty fee ("Royalty Fee") equal to the greater of five percent (5%) of the Gross Sales (including National Accounts) or the minimum Royalty Fee ("Minimum Royalty Fee"), as outlined in the appropriate chart below:
City Wide Minimum Royalty Fee Chart (Over 1,000,000 population in Designated Territory)*
| Months in Operation | Minimum Royalty Fee |
|---|---|
| 1-6 months | Actual Royalty Fee |
| 7-9 months | $1,000/mo. |
| 10-12 months | $1,400/mo. |
| 13-15 months | $1,800/mo. |
| 16-18 months | $2,250/mo. |
| Months in Operation | Minimum Royalty Fee |
|---|---|
| 19-21 months | $2,700/mo. |
| 22-24 months | $3,150/mo. |
| 25 -36 months | $3,600/mo. |
| 37 and all months | $5,000/mo. |
| thereafter |
*As designated by City Wide at its sole and absolute right
City Wide Minimum Royalty Fee Chart (Under 1,000,000 population in Designated Territory)*
| 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 |
*As designated by City Wide at its sole and absolute right
If Franchisee's monthly Royalty Fees from all sources total less than the Minimum Royalty Fees outlined in the Minimum Royalty Fee charts outlined in Section 3.7.1 above, then the applicable Minimum Royalty Fees shall be paid by Franchisee to CITY WIDE.
3.7.2 Marketing Fee.
(a) Marketing Fund. A marketing fee ("Marketing Fee") will be assessed to fund research and development, placement of media and creation of national and international marketing and advertising materials, promotion and marketing of the franchise system, and development of the National Business Development Program in an amount equal to up to one percent (1%) of Franchisee's monthly Gross Sales, or as outlined in the Operating Manual. Franchisee must make all such payments to
the CITY WIDE Marketing Fund ("Fund"). CITY WIDE or its designee may expend amounts in the Fund by the terms of Section 10 of this Agreement.
- (b) Local Advertising. Franchisee must spend at least $1,200 annually on Franchisee's own advertising and promotion as outlined in the Operating Manual.
- 3.7.3 Accounting Services Fee.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees must pay a monthly royalty fee, which is the greater of 5% of gross sales or a minimum royalty fee. The specific minimum royalty fee amount depends on the chart outlined in Section 3.7.1 of the agreement.
After the initial training program, franchisees are also required to use City Wide's financial reporting, bookkeeping, and accounting services for the first 12 months. The current Accounting Services Fee is $1,500 per month but may be greater based on the level of services selected. Franchisees are also required to use City Wide's Business Development Services for the first 12 months after completing the initial training program. The current Business Development Services Fee is $3,500 per month.
After 14 months in operation, a City Wide franchisee is no longer required to use the Franchisor's financial reporting, bookkeeping, accounting services, or business development services. However, the franchisee will still be required to pay the monthly royalty fee, which is the greater of 5% of gross sales or the minimum royalty fee as outlined in Section 3.7.1. The franchisee will also be required to pay a National Technology Development Fee of $1,864 per month, $120 per month for Information Technology Services, $1,000 per year for access to the City Wide You intranet portal, and $300 per month for the City View IT project.