Is the initial franchise fee for City Wide refundable?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Initial Franchise Fee: Upon your execution of the Franchise Agreement, the Initial Franchise Fee is deemed to be fully earned and non-refundable under any circumstances, except as provided in ITEM 5.
- (3) Initial Territory Fee: Upon your execution of the Franchise Agreement, the Initial Territory Fee is deemed to be fully earned and non-refundable under any circumstances.
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 generally non-refundable. Specifically, upon signing the Franchise Agreement, the initial franchise fee, which is $70,000, is considered fully earned by City Wide and is non-refundable under most circumstances.
However, there is an exception mentioned in ITEM 5 of the FDD, which could provide conditions under which a refund might be possible. It is important for a prospective franchisee to carefully review ITEM 5 to understand these specific circumstances.
In addition to the initial franchise fee, City Wide also charges an initial territory fee, ranging from $15,000 to $50,000, which is also deemed fully earned and non-refundable upon execution of the Franchise Agreement. Therefore, a potential franchisee should be aware that both the initial franchise fee and the initial territory fee are at risk once the agreement is signed, emphasizing the importance of thorough due diligence before entering into the agreement.