Does City Wide independently verify the franchisee-supplied figures reported in Item 19?

According to City Wide's 2025 Franchise Disclosure Document, City Wide does not independently verify the financial figures reported by franchisees in Item 19. The financial performance representations, including average gross sales, monthly gross sales, and net royalties, are based on sales records and reports submitted by franchisees, generated from City Wide's required accounting software. While City Wide states it has no reason to believe franchisees would overstate financial information, it acknowledges that the data has not been audited.

This means that the financial data presented in Item 19 relies on the accuracy and honesty of individual City Wide franchisees. Prospective franchisees should be aware that these figures are not independently checked or confirmed by City Wide. While the franchisor uses required accounting software, this does not guarantee the accuracy of the reported data.

Given this, it is crucial for potential City Wide franchisees to conduct their own due diligence and not solely rely on the financial performance representations in Item 19. This could involve speaking with current franchisees, consulting with a financial advisor, and carefully reviewing the assumptions and criteria used to generate the reported figures. Requesting the written substantiation that City Wide has in its possession to support the information appearing in Item 19 is also advisable.

It is typical in the franchise industry for franchisors to present financial performance representations; however, the level of verification can vary. Some franchisors may conduct audits or require more stringent reporting procedures. The fact that City Wide does not independently verify franchisee-supplied figures is a point of consideration for prospective franchisees to weigh carefully.