What does the City Wide Marketing Fee fund?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
A marketing fee ("Marketing Fee") will be assessed to fund research and development, placement of media and creation of national and international marketing and advertising materials, promotion and marketing of the franchise system, and development of the National Business Development Program in an amount equal to up to one percent (1%) of Franchisee's monthly Gross Sales, or as outlined in the Operating Manual. Franchisee must make all such payments to
the CITY WIDE Marketing Fund ("Fund"). CITY WIDE or its designee may expend amounts in the Fund by the terms of Section 10 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Marketing Fee is used to fund several key areas related to marketing and business development. Specifically, it supports research and development efforts, the creation and placement of national and international marketing and advertising materials, and the overall promotion and marketing of the City Wide franchise system. Additionally, the Marketing Fee contributes to the development of the National Business Development Program.
The Marketing Fee is a recurring fee, with franchisees paying up to one percent (1%) of their monthly Gross Sales into the City Wide Marketing Fund. This fund is managed by City Wide and is intended to enhance the recognition and acceptance of the City Wide brand, as well as to foster national business relationships that benefit the entire franchise system. While City Wide aims to balance the promotion of the system with each franchisee's contribution, there is no guarantee that any individual franchisee will directly benefit from the marketing efforts.
City Wide has the discretion to manage the Marketing Fund, including decisions about concepts, materials, staffing, and media. The FDD specifies that the fund will not be used for City Wide's general operating expenses, except for those reasonably related to marketing, national business development, or the administration of the fund itself. An annual accounting of the Marketing Fund will be prepared at the Fund's expense and made available to franchisees upon request, providing transparency in how the funds are utilized. Franchisees are also required to spend at least $1,200 annually on their own local advertising and promotion, as outlined in the Operating Manual.