Does a City Wide franchisee receive an exclusive territory?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
quirements concerning the establishment and operation of the Office and you are required to promptly comply with such requirements upon receipt of notice from CITY WIDE.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that CITY WIDE or its affiliates own, or from other channels of distribution or competitive brands that CITY WIDE or its affiliates control.
CITY WIDE will not operate or license others to operate a CITY WIDE Franchised Business using the Marks within your Designated Territory unless you do not meet the annual revenue per capita ("Annual Revenue Per Capita Growth") in every year during the term of your Franchise Agreement.
Specifically, you will be required to grow the gross revenues generated by your CITY WIDE Franchised Business to no less than $0.20 per person per year in your Designated Territory. The rate of $0.20 is the current rate. On an annual basis beginning of fiscal year any metric that we use to measure the Annual Revenue Per Capita Growth may be adjusted based upon the increase in the Consumer Price Index as currently measured by the Index as defined below, but not to exceed 3%. For purposes of this section, "Index" shall mean (i) the increase in the Consumer Price Index for all Urban Consumers, U.S. City Average (1982-84 = 100) published by the Bureau of Labor Statistics of the United States Department of Labor. When the rate is increased, CITY WIDE will notify you and the increase will appear in the Manual.
You must meet this requirement each year, however, CITY WIDE will measure your Annual Revenue Per Capital Growth by calculating the average revenues generated by Franchisee's Franchised Business in the preceding two (2) years of operations. Each year thereafter, CITY WIDE will measure your Annual Revenue Per Capita Growth by calculating the average revenues generated by your CITY WIDE Franchised Business in the immediately preceding two (2) years of operations. If you fail to satisfy the Annual Revenue Per Capita Growth requirement in any twenty-four month period, it will be deemed a material breach of the Franchise Agreement, and CITY WIDE will then have the right to reduce the size of your Designated Territory, grant additional franchises within the Designated Territory or to terminate your Franchise Agreement, however, you will have a period not to exceed one (1) year to cure such breach.
These Annual Revenue Per Capita Growth figures are not financial performance representations for your CITY WIDE Franchised Business. Other than as provided in ITEM 19, CITY WIDE does not furnish or authorize its salespersons to furnish any oral or written information concerning the actual or potential sales, costs, income or profits of a CITY WIDE Franchised Business. If your Franchise Agreement is renewed, your Annual Revenue Per Capita Growth must increase by the per capita growth as stated in the Manual and in the then-current Franchise Disclosure Document, generated in the immediately preceding two (2) years of operations.
Furthermore, the license granted to you by CITY WIDE is limited to the right to develop and operate one Franchised Business at the Location located in the Designated Territory, and does not include
(i) any right to market or sell products or services identified by the Marks at any location other than the Location, or through any other channels or methods of distribution, including the Internet (or any existing or future form of electronic commerce including but not limited to social media websites and mobile communication devices), except by policies stated in the Operating Manual; (ii) any right to sell products or services identified by the Marks to any person or entity for resale or further distribution; or (iii) any right to exclude, control, or impose conditions on CITY WIDE's development of future franchised, company, or Affiliate-owned Franchised Businesses at any time outside of the Territory.
You also acknowledge and agree that CITY WIDE and its Affiliates reserve the right to:
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- Establish and/or license other Franchised Businesses at any location outside of the Designated Territory as CITY WIDE deems appropriate.
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- Establish and license others to establish businesses under other systems using the Marks or other proprietary marks, which businesses may be located within or outside the Designated Territory, provided, however, that, except as specifically provided in the Franchise Agreement, CITY WIDE will not license or establish a business substantially similar to the Franchised Business and using the Marks within your Designated Territory.
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Source: Item 12 — TERRITORY (FDD pages 36–39)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. While City Wide agrees not to grant another City Wide franchise in a franchisee's designated territory, franchisees may face competition from other franchisees, outlets that City Wide or its affiliates own, or from other channels of distribution or competitive brands that City Wide or its affiliates control.
The FDD specifies that City Wide will not operate or license others to operate a City Wide franchised business using its marks within a franchisee's designated territory if the franchisee meets the annual revenue per capita growth requirement. This growth is set at a minimum of $0.20 per person per year in the designated territory. This rate may be adjusted annually based on the Consumer Price Index, but the increase will not exceed 3%. Failure to meet this growth requirement in any 24-month period constitutes a material breach of the Franchise Agreement, potentially leading to a reduction in the size of the designated territory, the granting of additional franchises within the territory, or termination of the Franchise Agreement.
City Wide also retains the right to establish or license other franchised businesses outside the designated territory and to establish businesses under other systems using the City Wide marks, even within the designated territory, provided they are not substantially similar to the franchised business. They can also sell authorized services and products under other trademarks through various distribution channels within and outside the designated territory. Furthermore, City Wide reserves the right to engage in activities not expressly prohibited in the Franchise Agreement, including maintaining a National Business Development Program, where City Wide, an affiliate, or a third party designee may service national accounts within a franchisee's territory if the franchisee cannot fully service them, without any compensation to the franchisee.
Prospective franchisees should carefully consider these factors and how they might impact their business. The lack of an exclusive territory and the potential for competition from various sources could affect revenue and profitability. The annual revenue per capita growth requirement adds another layer of complexity, as failure to meet this target could result in adverse consequences. It is important to fully understand the terms of the Franchise Agreement and the potential risks and rewards before investing in a City Wide franchise.