Are City Wide franchisees required to pay monthly licensing fees in addition to the Technology Provisioning Fee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
- 3.7.5 National Technology Development Fee.
Franchisee agrees to pay to Franchisor $1,864 per month for the costs associated with Franchisee's participation in Franchisor's design, development. testing and deployment technology capabilities utilized in the operations of the Franchised Business.
- 3.7.6 Information Technology Services Fee.
Franchisee is required to use Franchisor's Information Technology Services for the first thirty-six (36) months commencing on the date this Agreement is signed for Franchisor to assist Franchisee under the terms and conditions as outlined in the IT Services Agreement attached hereto and incorporated herein by this reference as Attachment M.
The current Information Technology Services Fee is $120 per month, however it may be greater based upon the level of services you elect.
This does not include the cost of any hardware or software.
This fee may vary based upon the terms of the IT Services Agreement.
- 3.7.7 City Wide You Fee.
Franchisee will pay Franchisor $1,000 per year for access to the City Wide You intranet portal.
- 3.7.8 City View IT Project.
Franchisee will pay Franchisor $300 per month for
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 pay monthly licensing fees in addition to the Technology Provisioning Fee. The Technology Provisioning Fee of $12,500 covers the setup of City Wide's enterprise software, but it does not include the cost of hardware or the required monthly licensing fees. This means that franchisees should anticipate ongoing monthly expenses for technology licensing in addition to the initial Technology Provisioning Fee and the cost of procuring hardware from City Wide.
City Wide franchisees also pay several other technology-related fees. Franchisees must pay $1,864 per month for the National Technology Development Fee, which covers participation in the design, development, testing, and deployment of technology capabilities used in the franchised business. Additionally, franchisees pay an Information Technology Services Fee, which is currently $120 per month for the first 36 months of the agreement, but may increase depending on the level of services selected. Franchisees also pay $1,000 per year for access to the City Wide You intranet portal and $300 per month for the City View IT project.
Prospective franchisees should carefully consider these ongoing technology costs when evaluating the City Wide franchise opportunity. It is important to factor in these monthly fees, along with other fees such as the Royalty Fees and Marketing Fees, to accurately assess the potential profitability of the franchise. Franchisees should also inquire about any potential increases to these fees and the specific services included in each fee to fully understand the financial obligations associated with the franchise.