Is the Initial Franchise Fee for City Wide refundable under any circumstances, and if so, what are they?
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.
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, which is $70,000, is generally non-refundable. Once you sign the Franchise Agreement, City Wide considers the initial franchise fee fully earned.
However, there is an exception. According to Item 7, the initial franchise fee is non-refundable "except as provided in ITEM 5." Item 5 of the FDD would contain information about the specific conditions under which a refund of the initial franchise fee might be possible.
Prospective franchisees should carefully review Item 5 of the 2025 FDD to understand the specific circumstances, if any, under which the initial franchise fee could be refundable. Understanding these conditions is crucial before signing the Franchise Agreement and paying the $70,000 initial franchise fee to City Wide.