Is the initial territory fee paid to City Wide refundable?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
isees' respective territories.
Non-Refundability of Initial Fees
Upon your execution of the Franchise Agreement, the Initial Franchise Fee and Initial Territory Fee are deemed to be fully earned and non-refundable under any circumstances, except as provided below:
- a. If CITY WIDE, at its sole and absolute right, after evaluating your personal abilities, aptitudes and financial qualifications to be a franchisee, elects within 15 days following the submission of all data to terminate your Franchise Agreement, you will receive a refund of your Initial Fees, less an evaluation fee which will not exceed $2,500.
- b. If you are unable to provide adequate proof of financing or have sufficient assets and in an acceptable form, at CITY WIDE's sole and absolute right, within 30 days of the execution of the Franchise Agreement, then upon written notice by either party, CITY WIDE or you may terminate the Franchise Agreement and CITY WIDE will refund the Initial Fees paid to CITY WIDE by you, less the sum of $2,500 as liquidated damages. (See Section 3.4 of the Franchise Agreement)
- c. If you or your designees do not successfully complete the required initial training program or fail to secure an acceptable site for your Franchised Business's office, as determined by CITY WIDE, at its sole and absolute right, CITY WIDE may terminate the Franchise Agreement and refund to you your Initial Franchise Fee, less training
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the initial territory fee is generally non-refundable. However, there are a few specific circumstances under which a refund may be possible.
Upon signing the Franchise Agreement, both the Initial Franchise Fee and the Initial Territory Fee are considered fully earned by City Wide and are non-refundable. There are three exceptions to this rule. First, if City Wide determines within 15 days of receiving all necessary data that the franchisee is not qualified, City Wide may terminate the agreement and refund the Initial Fees, less an evaluation fee that will not exceed $2,500. Second, if the franchisee cannot provide adequate proof of financing or sufficient assets within 30 days of signing the Franchise Agreement, either party may terminate the agreement, and City Wide will refund the Initial Fees less $2,500 as liquidated damages. Third, if the franchisee or their designees do not successfully complete the required initial training program or fail to secure an acceptable site for the Franchised Business's office, City Wide may terminate the Franchise Agreement and refund the Initial Franchise Fee, less training and other expenses incurred by City Wide, which will not exceed $10,000.
It is important for prospective City Wide franchisees to understand these conditions and their implications. While the initial fees are generally non-refundable, these exceptions provide some limited protection for franchisees who may be unable to proceed with the franchise due to specific circumstances. Franchisees should carefully review the Franchise Agreement and discuss these refund conditions with City Wide before signing.