How is the Initial Territory Fee for a City Wide franchise determined?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
The determination of a Designated Territory's size and the Initial Territory Fee to be paid for such Designated Territory shall be at the sole and absolute right of CITY WIDE.
INITIAL TERRITORY FEE AND DESIGNATED TERRITORY
- Designated Territory: Population: Territory Name: Geographic Boundaries: SEE ATTACHMENT: DESIGNATED TERRITORY (maps and zips) 2. Initial Territory Fee. The Initial Territory Fee of $ is based upon the chart set forth below. All population determinations are based upon the latest United States Census information available for the proposed Designated Territory, including any data available at https://www.census.gov. TERRITORY SIZE TERRITORY FEE Less Than 1,000,000 population $15,000 1,000,001 to 1,499,999 population $30,000 1,500,000 to 2,000,000 population $35,000 2,000,001 and above $50,000 Franchisee may solicit or accept orders from consumers outside of Franchisee's Designated Territory, provided that such order is not within the Designated Territory of another franchisee or affiliate owned location.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the determination of the Initial Territory Fee is at the sole discretion of City Wide. The Initial Territory Fee is in addition to the $70,000 initial franchise fee, $7,500 initial training fee, and $12,500 technology provisioning fee.
Attachment B to the Franchise Agreement provides a chart that outlines how the Initial Territory Fee is determined based on population size. For a territory with less than 1,000,000 in population, the Initial Territory Fee is $15,000. For a territory with a population between 1,000,001 and 1,499,999, the fee is $30,000. Territories with populations between 1,500,000 and 2,000,000 have a $35,000 fee, and territories with populations of 2,000,001 and above have a $50,000 Initial Territory Fee.
Prospective franchisees should note that these fees are nonrefundable, except in specific circumstances where City Wide terminates the agreement within fifteen days after evaluating the franchisee's qualifications. Franchisees should carefully consider the population and potential market size of their designated territory in relation to the Initial Territory Fee, as this will impact their initial investment and potential for growth.
The FDD also states that all population determinations are based upon the latest United States Census information available for the proposed Designated Territory, including any data available at https://www.census.gov. Franchisees may solicit or accept orders from consumers outside of Franchisee's Designated Territory, provided that such order is not within the Designated Territory of another franchisee or affiliate owned location.