What level of interest in the City Wide franchised business must a manager own?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Manager must own at least a twenty percent (20%) interest in Franchised Business (if Franchisee is an entity, Manager must own twenty percent (20%) of the entity that owns the Franchised Business); provided however, that CITY WIDE may agree to an alternative arrangement (other than direct ownership by the Manager) in exceptional circumstances.
CITY WIDE reserves the right to request proof of residency of either Franchisee or your Manager, as applicable, and proof of your Manager's ownership interest, if you nominate a Manager.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a manager must own at least a 20% interest in the franchised business. If the franchisee is an entity, the manager must own 20% of that entity. However, City Wide may agree to an alternative arrangement other than direct ownership in exceptional circumstances.
This requirement ensures that the manager has a vested interest in the success of the City Wide franchise, aligning their goals with those of the franchisee and the overall brand. By owning a significant portion of the business, the manager is incentivized to perform well and contribute to the growth and profitability of the franchise.
City Wide retains the right to request proof of the manager's ownership interest. This condition is applicable when a franchisee wishes to designate a manager to oversee the day-to-day operations, provided the franchise is within the top 25% of the system in terms of Annual Revenue Per Capita Growth or a similar metric. This option is not available if the franchised business is the first City Wide location in the designated territory or surrounding area.