If City Wide approves a proposed supplier, is the City Wide franchisee required to purchase from that supplier?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
re required to use for the first twelve months after you have completed the initial training program.
If you propose to use at your Location any equipment or any brand of product which is not currently approved by CITY WIDE, or to purchase any product from a supplier that is not then designated by CITY WIDE as an Approved Supplier on CITY WIDE's Approved Suppliers List, you must first notify CITY WIDE and must, upon request by CITY WIDE, submit samples or other information as CITY WIDE requires for examination and testing or to otherwise determine whether the proposed supply or supplier meets CITY WIDE's specifications and quality standards. CITY WIDE will not consider franchise owners or their affiliates requesting to become Approved Suppliers. A charge not to exceed the reasonable cost of CITY WIDE's inspection and evaluation, which CITY WIDE generally anticipates to range not to exceed $250, plus the actual cost of any test will be paid to CITY WIDE by you or the supplier. CITY WIDE will notify you within 45 business days whether it approves or disapproves of the proposed supply or supplier. If CITY WIDE approves the proposed supply or supplier, you will be permitted to purchase that supply or use that supplier in connection with your Franchised Business unless such approval is revoked. CITY WIDE reserves the right at its option, to re-inspect the facilities and products of any supplier of an approved item and to revoke its approval of any item which fails to continue to meet any of CITY WIDE's criteria.
CITY WIDE applies the following general criteria in designating a proposed supplier as an Approved Supplier:
-
- Ability to make the product to CITY WIDE quality specifications;
-
- Production and delivery capability;
-
- All such items must meet CITY WIDE'S Approved Suppliers standards; and
-
- Integrity of the supplier.
CITY WIDE currently receives a rebate from multiple suppliers, based upon the dollar amount of purchases made by franchisees. CITY WIDE currently receives a rebate from multiple suppliers, based upon the dollar amount of purchases made by franchisees. In 2024, CITY WIDE received $240,946 in total rebates, with supplier and amount detail as follows: NSA $212,670, Essity $6,892, Envirox $6,805, Vistaprint $6,759, Spartan Chemical $3,749, BASYS $1,888, Unifirst $1,184 and ProTeam $999.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–28)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, if City Wide approves a proposed supplier, a franchisee is generally permitted to purchase from that supplier unless the approval is revoked. City Wide retains the right to re-inspect the facilities and products of any approved supplier and can revoke approval if the supplier fails to meet City Wide's criteria. This means that while franchisees have some flexibility in choosing suppliers, City Wide maintains control over quality and standards.
City Wide encourages franchisees to use only approved providers and products listed on the Approved Suppliers List, Approved Supplies List, or in the Operating Manual. However, City Wide designates certain suppliers as "Required Suppliers" from whom franchisees must purchase specific items or services. Currently, ADP Payroll Services is a required supplier, and franchisees may not use payroll services from any other provider. City Wide or its affiliate is also a required supplier for Technology Systems and IT Services.
To propose a new supplier or product, a franchisee must notify City Wide and submit samples or information for evaluation. City Wide may charge a fee, generally not exceeding $250 plus testing costs, for the inspection and evaluation. City Wide will then notify the franchisee of its decision within 45 business days. This process ensures that all suppliers meet City Wide's standards for quality, production capability, and integrity.
City Wide also benefits from supplier rebates based on franchisee purchases. In 2024, City Wide received $240,946 in total rebates from various suppliers, with NSA contributing the largest portion at $212,670. This rebate system incentivizes City Wide to maintain relationships with approved suppliers and may influence their approval decisions. Franchisees should be aware of these financial relationships and how they might affect supplier choices and costs.