Are late charges and interest applicable to the IT Services Fee owed to City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Pricing. Franchisee agrees to pay to City Wide the fee structure, as set forth on Exhibit A, attached hereto and incorporated herein, per month per Technology System ("IT Services Fee"). The IT Services Fee shall be paid in the same way Franchisee remits Royalties and other fees to City Wide and will vary based upon peripheral components selected. The IT Services Fee may be increased based on City Wide's then current published rates. The IT Services Fee and any other amounts due to City Wide hereunder shall be subject to the same late charges and interest as Royalties as set forth in the Franchise Agreement.
- 3.11 Late Payments.
If any report is not made or any fee or any other amount due under this Agreement is not delivered or paid to CITY WIDE on or before the date due, Franchisee must pay the greater of Thirty Dollars ($30) plus interest at the highest rate of interest then permitted by applicable law of the state where the Franchised Business is located for each day such amount is past due.
Such nonpayment or non-delivery will be considered a material breach of this Agreement.
Any resulting termination, interest due and service charges will be in addition to any other remedies CITY WIDE may have because of such default.
- 3.12 Verification.
CITY WIDE has the right to establish reasonable procedures for verifying figures and collecting Royalty Fees, Marketing Fees, and all other recurring fees.
- 3.13 Order for Application of Fees.
CITY WIDE will apply for Franchisee's payments under this Section 3 to Franchisee's obligations to CITY WIDE in such order as CITY WIDE may designate from time to time.
Franchisee agrees that Franchisee may not designate an order for application of any fees different from that which CITY WIDE designates.
Franchisee expressly acknowledges and agrees that CITY WIDE may accept fees Franchisee pays under different instructions without any obligation to follow such instructions, even if Franchisee makes such payment conditional on CITY WIDE following such instructions.
This provision may be waived only by a written agreement signed by CITY WIDE, which written agreement must be separate and distinct from the check or other document constituting payment.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, late charges and interest do apply to the IT Services Fee. The IT Services Fee is paid in the same manner as royalties and other fees to City Wide. The IT Services Fee may be increased based on City Wide's then current published rates.
If any fee or amount due under the Franchise Agreement is not paid on time, the franchisee must pay the greater of $30 or interest at the highest rate permitted by law in the state where the franchised business is located for each day the amount is past due. Nonpayment or non-delivery is considered a material breach of the agreement, and any resulting termination, interest, and service charges are in addition to other remedies City Wide may pursue.
City Wide has the right to establish reasonable procedures for verifying figures and collecting Royalty Fees, Marketing Fees, and all other recurring fees. City Wide will apply payments to obligations in the order it designates, and the franchisee cannot designate a different order. City Wide may accept payments with different instructions without obligation to follow them, unless waived in writing by City Wide.