Where will the increase in the Consumer Price Index appear for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ss revenues generated by your CITY WIDE Franchised Business to no less than $0.20 per person per year in your Designated Territory. The rate of $0.20 is the current rate. On an annual basis beginning of fiscal year any metric that we use to measure the Annual Revenue Per Capita Growth may be adjusted based upon the increase in the Consumer Price Index as currently measured by the Index as defined below, but not to exceed 3%. For purposes of this section, "Index" shall mean (i) the increase in the Consumer Price Index for all Urban Consumers, U.S. City Average (1982-84 = 100) published by the Bureau of Labor Statistics of the United States Department of Labor. When the rate is increased, CITY WIDE will notify you and the increase will appear in the Manual.
You must meet this requirement each year, however, CITY WIDE will measure your Annual Revenue Per Capital Growth by calculating the average revenues generated by Franchisee's Franchised Business in the preceding two (2) years of operations. Each year thereafter, CITY WIDE will measure your Annual Revenue Per Capita Growth by calculating the average revenues generated by your CITY WIDE Franchised Business in the immediately preceding two (2) years of operations.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, any metrics used to measure the Annual Revenue Per Capita Growth or the Minimum Total Revenue Retention Requirement may be adjusted based on the increase in the Consumer Price Index (CPI). The CPI used is for all Urban Consumers, U.S. City Average (1982-84 = 100) published by the Bureau of Labor Statistics of the United States Department of Labor. These adjustments cannot exceed 3%.
City Wide will notify franchisees of any rate increases, and these increases will be documented in the Operating Manual. This means franchisees need to regularly consult the manual for updates to understand how the CPI affects their financial metrics.
For a prospective City Wide franchisee, this indicates that certain financial benchmarks can fluctuate with inflation, potentially impacting performance targets and revenue retention requirements. Franchisees should monitor updates to the Operating Manual and factor in potential CPI adjustments when forecasting their business performance. Staying informed about these adjustments is crucial for maintaining compliance and financial health within the City Wide franchise system.