Where will City Wide maintain the Marketing Fund?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.2 The Fund will be maintained by CITY WIDE in a separate bank account which will be designated as a "Trust Account," and which will not be commingled with any funds of CITY WIDE.
Any interest that may accrue or be earned on the Fund will be added to and become a part of the Fund.
An annual accounting of the Fund will be prepared at the Fund's expense and made available to Franchisee upon request.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Marketing Fund will be maintained in a separate bank account designated as a "Trust Account." This account will be held by City Wide and will not be commingled with any of City Wide's other funds. Any interest that accrues on the Marketing Fund will be added to the fund itself.
This arrangement provides a level of transparency and security for franchisees, as their marketing contributions are kept separate from the general operating funds of City Wide. The designation as a "Trust Account" implies a fiduciary responsibility on the part of City Wide to manage the funds prudently and solely for the intended marketing purposes. This setup is fairly common in franchising, as it ensures that marketing fees are used for the benefit of the entire franchise system.
City Wide will also provide an annual accounting of the Marketing Fund, which will be available to franchisees upon request. This accounting will be prepared at the Fund's expense. This allows franchisees to review how the marketing funds are being used and to ensure that they are being spent in accordance with the franchise agreement. Franchisees should carefully review these accountings and raise any concerns with City Wide if they believe the funds are not being managed appropriately.