How is the City Wide Marketing Fund funded?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
The Marketing Fund ("Fund") is used to fund research and development, placement of media, creation of national and international marketing and advertising materials, promotion and marketing of the franchise system, and development of the National Business Development Program and is funded by the franchisees. The Fund is currently 1% of your total gross sales, or as set forth in the Operating Manual. The business which is operated by CITY WIDE does not contribute to the Fund on the same basis as the franchisees. The Fund is administered by CITY WIDE accounting and marketing personnel. An annual audited financial statement of the Fund is available to any franchisee upon request. CITY WIDE is not required to spend any amount on advertising in the designated territory where the franchise is located. No advertising expenditures from the Fund will be devoted principally to the sale of new franchises. Any amounts remaining in the Fund at the end of the Fund fiscal year will be carried over to the next succeeding year. The accounting/financial statements for the Fund will be made available every year to you, upon your request by telephone or written correspondence. During CITY WIDE's last fiscal year which ended on December 31, 2024, CITY WIDE spent 71.5% of the Fund on the National Business Development Program; 26.9% on general marketing activities and 1.6% on local sales consulting and coaching. The entire amount was spent on other purposes such as sales staff expense, sales activities, digital marketing, marketing staff, NBD operations and accounting and customer appreciation. None of these funds were spent to solicit new franchise sales.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 29–36)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Marketing Fund is primarily funded by franchisees. The contribution is currently 1% of the franchisee's total gross sales, although the exact percentage can be adjusted as outlined in the Operating Manual. It is important to note that the business operated by City Wide itself does not contribute to the fund on the same basis as its franchisees. This means that while franchisees are required to contribute a percentage of their gross sales, City Wide's corporate-owned operations may have a different arrangement.
The funds collected are allocated to various marketing and development activities. These include research and development, media placement, creation of marketing and advertising materials at both national and international levels, promotion of the franchise system, and the development of the National Business Development Program. City Wide manages the fund through its accounting and marketing personnel, ensuring that the resources are directed towards these key areas.
City Wide also provides transparency regarding the fund's financials. An annual audited financial statement of the Marketing Fund is available to franchisees upon request. For the fiscal year ending December 31, 2024, the majority (71.5%) of the fund was spent on the National Business Development Program, with 26.9% allocated to general marketing activities and 1.6% to local sales consulting and coaching. The remaining amount was used for other purposes such as sales staff expenses, sales activities, digital marketing, marketing staff, NBD operations and accounting, and customer appreciation. None of the funds were used to solicit new franchise sales, ensuring that the contributions are focused on supporting existing franchisees and the overall brand.