To whom is the Initial Franchise Fee for City Wide paid?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure1 | Amount | payment | When Due | is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee2 | $70,000 | Lump Sum | At Signing of Franchise Agreement | CITY WIDE |
| Initial Training Fee | $7,500 | Lump Sum | At Signing of Franchise Agreement | CITY WIDE |
| Initial Territory Fee3 | $15,000 to $50,000 | Lump Sum | At Signing of Franchise Agreement | CITY WIDE |
| Technology Provisioning | $12,500 | Lump Sum | At Signing of | CITY WIDE |
| Fee4 | Franchise Agreement | |||
| Travel and Living Expenses While Training5 | $4,000 to $10,000 | As Incurred | During Training/ Before Opening | Airlines, hotels, Restaurants, Car Rental Companies, and other vendors |
| Real Estate / Rent Deposit6 | $6,000 to $12,000 | As Arranged | Before Opening | Your Landlord |
| Leasehold Improvements7 | $0 to $5,000 | As Arranged | Before Opening | Landlord, Contractors, and Vendors |
| Signage8 | $700 to $2,500 | As Arranged | Before Opening | Approved Suppliers and Vendors |
| Utility and Security | $0 to $3,000 | As Arranged | Before Opening | Landlord and Utility |
| Deposits9 | Companies | |||
| Furniture, Fixtures, and | $5,000 to $16,000 | As Arranged | Before Opening | Approved Suppliers |
| Equipment10 | and Vendors | |||
| Computer Hardware, | $7,000 to $10,500 | As Arranged | Before Opening | CITY WIDE |
| Software, Peripherals and | ||||
| Licensing Fees11 | ||||
| IT Support Services12 | $120 per user per month for the first thirty-six months of operations for ongoing IT desktop services and support. | As Arranged, Monthly | Before Opening | CITY WIDE |
| Accounting Services13 | $1,500 | Monthly | Upon Opening | CITY WIDE |
| Business Development | $3,500 | Monthly | Upon Opening | CITY WIDE |
| Services14 | ||||
| Technology Development | $1,864 | Monthly | Upon Opening | CITY WIDE |
| Fee and IT Project | ||||
| Development Fees15 | ||||
| IT Project Development | $300 | Monthly | Upon Opening | CITY WIDE |
| Fees 15 | ||||
| Office Supplies and | $1,400 to $2,100 | Monthly | Upon Opening | CITY WIDE |
| Stationery16 | ||||
| Amount | Method of | When Due | To Whom Payment | |
| Type of Expenditure1 | payment | is to be Made | ||
| Recruitment Advertising | $4,500 to $13,500 | As Arranged | As Arranged | CITY WIDE and |
| and Services17 | Various Providers | |||
| Insurance18 | $1,900 to $5,700 | Installment/As Arranged | Monthly/As Arranged, A Portion Before Opening | Insurance Company |
| Payroll Technology19 | $1,000 to $3,500 | As Arranged | As Incurred | Required Suppliers |
| Professional Fees and License Fees20 | $8,000 to $12,000 | As Arranged | As Incurred | Approved Suppliers, Governmental Agencies, Accountants, Attorneys |
| Additional Funds21 | $75,000 to $150,000 | As Incurred | As Incurred | Various Providers, Suppliers and Employees |
| TOTAL22 | $226,784 to 393,084 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–24)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the initial franchise fee is paid directly to City Wide. The table outlining the estimated initial investment details that the initial franchise fee is $70,000, payable in a lump sum upon signing the Franchise Agreement, and is to be made to City Wide.
In addition to the initial franchise fee, several other initial costs are also paid to City Wide. These include the initial training fee of $7,500, the technology provisioning fee of $12,500, costs for computer hardware, software, peripherals and licensing fees ranging from $7,000 to $10,500, IT support services at $120 per user per month for the first 36 months, accounting services at $1,500 monthly, business development services at $3,500 monthly, technology development fees at $1,864 monthly, IT project development fees at $300 monthly, office supplies and stationery ranging from $1,400 to $2,100 monthly, and recruitment advertising and services.
Prospective franchisees should note that while many initial costs are paid to City Wide, some expenses are paid to third parties. For example, travel and living expenses during training are paid to airlines, hotels, restaurants, and car rental companies. Real estate rent deposits are paid to the landlord, and insurance costs are paid to the insurance company. Understanding where the initial investment funds are directed is crucial for budgeting and financial planning when considering a City Wide franchise.