For City Wide franchisees, how are the fees for additional accounting services determined?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
al 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. Franchisee is required to use Franchisor's financial reporting, bookkeeping and other accounting services for the first twelve (12)
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees are required to use City Wide's financial reporting, bookkeeping, and other accounting services for the first 12 months after completing the initial training program. The standard accounting services fee is currently $1,500 per month. However, the FDD states that this fee may be greater depending on the level of services the franchisee elects. The specific terms and conditions are outlined in the Accounting Services Agreement, which is included as Attachment L to the Franchise Agreement. The FDD also indicates that this rate is subject to change based upon the terms of the Accounting Services Agreement.
Prospective City Wide franchisees should carefully review Attachment L, the Accounting Services Agreement, to fully understand the scope of services provided and how the fees may increase beyond the initial $1,500 per month. Understanding the factors that could lead to higher fees is crucial for accurate financial planning. Franchisees should also inquire about the process for requesting additional accounting services and how those requests impact the overall cost.
It is also important to note that for franchisees entering into a Successor Franchise Agreement with City Wide, Section 3.7.3 regarding Accounting Services Fee is deleted in its entirety, meaning that the terms for accounting services may differ significantly or not be required at all. Therefore, successor franchisees should pay close attention to the specific terms outlined in their individual agreements regarding accounting services.