What happens to any interest that accrues or is earned on the City Wide Marketing Fund?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.2 The Fund will be maintained by CITY WIDE in a separate bank account which will be designated as a "Trust Account," and which will not be commingled with any funds of CITY WIDE.
Any interest that may accrue or be earned on the Fund will be added to and become a part of the Fund.
An annual accounting of the Fund will be prepared at the Fund's expense and made available to Franchisee upon request.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, any interest that accrues or is earned on the Marketing Fund will be added to the fund itself. City Wide maintains the Marketing Fund in a separate bank account designated as a "Trust Account," ensuring it is not commingled with City Wide's own funds.
This arrangement benefits franchisees because it ensures that any earnings generated by the Marketing Fund are reinvested to further enhance marketing efforts. The Marketing Fund is used for national, regional, and/or local marketing and national business development, public relations and marketing programs, marketing support materials, market research relating to the System, and production of signage, printed materials, and any similar materials derived from any such market research.
City Wide will provide an annual accounting of the Marketing Fund at the Fund's expense, which is available to franchisees upon request. This transparency allows franchisees to monitor the fund's performance and how it is being utilized to promote the City Wide brand and support business development. Franchisees should request and review this accounting to ensure the fund is managed appropriately and that their contributions are being used effectively.