Can the Information Technology Services Fee for City Wide franchisees vary?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
The current Business Development Services Fee is $3,500 per month. This fee may vary based upon the terms of the Business Development Services Agreement.
- 3.7.5 National Technology Development Fee. Franchisee agrees to pay to Franchisor $1,864 per month for the costs associated with Franchisee's participation in Franchisor's design, development. testing and deployment technology capabilities utilized in the operations of the Franchised Business.
- 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.
- 3.7.7 City Wide You Fee.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Information Technology Services Fee can vary. Franchisees are required to use City Wide's IT services for the first 36 months after signing the agreement. The standard fee is $120 per month, but this amount can increase depending on the level of services the franchisee selects. The FDD specifies that this fee does not include the cost of any hardware or software. The fee may also vary based on the terms of the IT Services Agreement.
Additionally, franchisees agree to pay the IT Services Fee per month per Technology System, as outlined in Exhibit A. This fee is paid in the same manner as royalties and other fees to City Wide. The IT Services Fee will vary based on the peripheral components selected by the franchisee. City Wide also retains the right to increase the IT Services Fee based on their then-current published rates.
This means that a City Wide franchisee's monthly IT costs can fluctuate depending on their specific needs and the technology they choose to utilize. It is important for prospective franchisees to carefully review the IT Services Agreement and Exhibit A to understand the potential range of these fees and how they might change over time. Understanding these costs is crucial for accurate financial planning and assessing the overall profitability of the franchise.