factual

To whom is the initial franchise fee for City Wide payable?

City_Wide Franchise · 2025 FDD

Answer 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.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.