What is the City Wide franchisee's obligation regarding the purchase of hardware required for the enterprise software?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
d or cashier's check, or by other payment methods as designated at CITY WIDE's sole and absolute right, the receipt of which CITY WIDE acknowledges by signing this Agreement. CITY WIDE will credit Franchisee with any deposit Franchisee paid within thirty (30) days immediately before the date of this Agreement Franchisee previously or contemporaneously paid CITY WIDE under any Deposit Agreement concerning the Franchised Business
- 3.2 Technology Provisioning Fee. The Technology Provisioning Fee of $12,500 includes payment for the set-up of the CITY WIDE enterprise software. This fee does not include the cost to procure hardware, which you must purchase from Franchisor, or the required monthly licensing fees paid by Franchisee as incurred.
- 3.3 Proof of Sufficient Assets.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the franchisee is responsible for procuring the hardware required to operate the enterprise software. Specifically, the Technology Provisioning Fee of $12,500 does not include the cost to procure hardware, which the franchisee must purchase from City Wide. Additionally, the franchisee is responsible for the costs of all enterprise upgrades and replacements of all equipment required to operate the software.
City Wide provides IT services to the Franchised Business, including laptop hardware. City Wide will procure and configure laptop hardware for the franchisee and its employees for use in the operation and management of the Franchised Business. The franchisee must also maintain an internet connection to each Technology System to facilitate updates, revisions support, and access by City Wide to the Software and for data exchange between City Wide and Franchisee. The franchisee will also be responsible for ensuring a proper environment and proper utilities for the hardware components of the Technology Systems on which the Software will operate.
This means that while City Wide provides the initial laptop hardware, the franchisee bears the ongoing responsibility for upgrades, replacements, and ensuring the hardware meets the operational requirements of the software. This could involve budgeting for future hardware expenses and staying informed about the system requirements for the City Wide software. It is important to note that the franchisee must purchase the hardware from City Wide.