Is a City Wide franchisee obligated to accept pricing advice or guidance from City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
CITY WIDE may, as it deems advisable from time to time, advise or offer guidance to Franchisee with respect to prices for products or services offered for sale by the Franchised Business, the charging of which, in CITY WIDE's judgment, constitutes good business practice.
Franchisee is not obligated to accept any such advice or guidance, and Franchisee has the sole right to determine prices to be charged by the Franchised Business, if Franchisee's prices are consistent with the CITY WIDE concept.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, while City Wide may offer pricing advice or guidance to its franchisees, franchisees are not obligated to accept it. The franchisee has the sole right to determine the prices charged by their City Wide franchise, as long as these prices are consistent with the City Wide concept. This means that while City Wide can suggest pricing strategies or specific prices, the final decision on pricing rests with the franchisee.
This flexibility allows franchisees to tailor their pricing to local market conditions and competitive pressures. However, it also places the responsibility on the franchisee to ensure that their pricing aligns with City Wide's overall brand image and service standards. If a franchisee's pricing deviates too much from what City Wide considers acceptable, it could potentially lead to issues with maintaining the consistency of the City Wide concept.
This arrangement is fairly common in franchising, where franchisors often provide pricing recommendations but allow franchisees some autonomy to set prices. This balance enables franchisees to respond to local market dynamics while maintaining brand standards and consistency across the franchise system. Prospective franchisees should understand that while they have pricing freedom, they must also consider City Wide's brand standards and the potential impact of their pricing decisions on the overall franchise system.