For a City Wide franchise in operation for 7-9 months, what is the minimum monthly royalty fee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
hs | $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. |
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the minimum monthly royalty fee for a franchise in operation for 7-9 months is either $750 or $1,000 per month, depending on which table is applicable. The document presents two different tables outlining the minimum royalty fees based on the months in operation.
One table indicates that for months 7-9, the minimum royalty fee is $1,000 per month. The other table specifies a minimum royalty fee of $750 per month for the same period. It is important to note that the royalty fee is the greater of 5% of gross sales or the minimum royalty fee.
A prospective franchisee should clarify with City Wide which of these tables applies to their specific franchise agreement to accurately determine their minimum royalty fee obligations during the initial months of operation. Understanding this distinction is crucial for financial planning and ensuring compliance with the franchise agreement.