To whom is the initial franchise fee for City Wide payable?
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 |
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, along with several other fees, is payable directly to City Wide. The initial franchise fee is $70,000. Other fees payable to City Wide include the initial training fee of $7,500, an initial territory fee ranging from $15,000 to $50,000, and a technology provisioning fee of $12,500. These fees are due upon signing the Franchise Agreement.
In addition to these initial fees, franchisees will also make ongoing monthly payments to City Wide for various services. These include IT support services at $120 per user per month for the first 36 months, accounting services for $1,500 monthly, business development services for $3,500 monthly, technology development fees of $1,864 monthly, and IT project development fees of $300 monthly. Office supplies and stationery, also payable to City Wide, range from $1,400 to $2,100 monthly.
However, not all payments are made directly to City Wide. For example, travel and living expenses during training, estimated between $4,000 and $10,000, are paid to airlines, hotels, restaurants, car rental companies, and other vendors. Real estate rent deposits, ranging from $6,000 to $12,000, are paid to the landlord. Similarly, leasehold improvements, signage, utility and security deposits, furniture, fixtures, and equipment are paid to landlords, contractors, approved suppliers, and vendors.
Prospective franchisees should note that while many initial and ongoing fees are paid to City Wide, a significant portion of the initial investment is distributed among various third-party providers. Understanding the specific payment schedules and recipients is crucial for budgeting and managing the financial aspects of the franchise.