If a City Wide franchisee fails to secure an acceptable site, is a refund provided?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
, CITY WIDE or Franchisee may terminate this Agreement and CITY WILL shall refund the Initial Fees paid to CITY WIDE by Franchisee, less the sum of Two Thousand Five Hundred Dollars ($2,500) in payment for CITY WIDE's expenses incurred on Franchisee's behalf. Franchisee and CITY WIDE agree that this amount is reasonable and due to the nature of the subject matter, it would be impossible to ascertain the exact amount of damages.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee may receive a refund of the initial fees if they fail to secure an acceptable site for their franchised business's office. However, this is contingent on City Wide's determination and sole discretion.
If City Wide terminates the franchise agreement because the franchisee could not secure an acceptable site, City Wide will refund the initial fees. However, City Wide will deduct training and other expenses incurred, with the total deduction not exceeding $10,000.
This condition protects City Wide by allowing them to recoup costs associated with setting up the franchise before the site selection issue arose. For a prospective franchisee, this highlights the importance of thorough site selection and due diligence to minimize the risk of losing a significant portion of the initial investment. Franchisees should clarify with City Wide what specific expenses might be deducted in such a scenario to fully understand the potential financial implications.