Can City Wide increase the IT Services Fee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Pricing. Franchisee agrees to pay to City Wide the fee structure, as set forth on Exhibit A, attached hereto and incorporated herein, per month per Technology System ("IT Services Fee"). The IT Services Fee shall be paid in the same way Franchisee remits Royalties and other fees to City Wide and will vary based upon peripheral components selected. The IT Services Fee may be increased based on City Wide's then current published rates. The IT Services Fee and any other amounts due to City Wide hereunder shall be subject to the same late charges and interest as Royalties as set forth in the Franchise Agreement.
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.
During the term of this Agreement, City Wide will provide IT Services to the Franchised Business (including employees) including laptop hardware, answering Franchisee's reasonable questions about access to and operation of the Technology System by e-mail, or in written and/or electronic documents.
IT Services will include minor Software upgrades and modifications; provided, however, City Wide reserves the right to determine when major upgrades or modifications are necessary and shall have the right to charge Franchisee a reasonable fee for the same.
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%.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the IT Services Fee can be increased based on City Wide's then-current published rates. The franchisee agrees to pay City Wide the IT Services Fee as set forth on Exhibit A, which is incorporated into the agreement. This fee is paid monthly per Technology System and varies based upon peripheral components selected. The IT Services Fee is remitted in the same way that royalties and other fees are paid to City Wide. Any amounts due to City Wide, including the IT Services Fee, are subject to the same late charges and interest as royalties, as outlined in the Franchise Agreement.
Additionally, franchisees are required to use City Wide's Information Technology Services for the first 36 months after signing the agreement. The current Information Technology Services Fee is $120 per month, but this amount may be greater depending on the level of services the franchisee selects. This fee does not include the cost of any hardware or software. The document also states that this fee may vary based upon the terms of the IT Services Agreement.
City Wide also reserves the right to determine when major software upgrades or modifications are necessary and can charge the franchisee a reasonable fee for these. If City Wide determines that a major upgrade or modification is necessary, the franchisee must implement the software change in the manner and time designated by City Wide. On an annual basis beginning of fiscal year any metric that City Wide uses 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%.