From when to when must a City Wide franchisee pay recurring fees?
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.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees must pay recurring fees starting on the first day the franchised business opens to the public, as determined by City Wide. This obligation continues throughout the entire term of the Franchise Agreement. These recurring fees must be paid without any offsets, credits, or deductions.
These recurring fees include items such as the Royalty Fee, which is a percentage of gross sales, or the Minimum Royalty Fee. The franchisee's obligation to pay these fees extends for the duration of the agreement.
Even if the Franchise Agreement expires, the franchisee's responsibility to pay any fees that were earned, accrued, or became due during the term of the agreement will still apply. This means that any outstanding balances or fees incurred before the agreement's expiration must still be settled with City Wide.