What is the minimum Annual Revenue Per Capita Growth required of a City Wide franchisee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
er franchisees, from outlets that CITY WIDE or its affiliates own, or from other channels of distribution or competitive brands that CITY WIDE or its affiliates control.
CITY WIDE will not operate or license others to operate a CITY WIDE Franchised Business using the Marks within your Designated Territory unless you do not meet the annual revenue per capita ("Annual Revenue Per Capita Growth") in every year during the term of your Franchise Agreement.
Specifically, you will be required to grow the gross revenues generated by your CITY WIDE Franchised Business to no less than $0.20 per person per year in your Designated Territory. The rate of $0.20 is the current rate. On an annual basis beginning of fiscal year any metric that we use to measure the Annual Revenue Per Capita Growth may be adjusted based upon the increase in the Consumer Price Index as currently measured by the Index as defined below, but not to exceed 3%. For purposes of this section, "Index" shall mean (i) the increase in the Consumer Price Index for all Urban Consumers, U.S. City Average (1982-84 = 100) published by the Bureau of Labor Statistics of the United States Department of Labor. When the rate is increased, CITY WIDE will notify you and the increase will appear in the Manual.
You must meet this requirement each year, however, CITY WIDE will measure your Annual Revenue Per Capital Growth by calculating the average revenues generated by Franchisee's Franchised Business in the preceding two (2) years of operations. Each year thereafter, CITY WIDE will measure your Annual Revenue Per Capita Growth by calculating the average revenues generated by your CITY WIDE Franchised Business in the immediately preceding two (2) years of operations. If you fail to satisfy the Annual Revenue Per Capita Growth requirement in any twenty-four month period, it will be deemed a material breach of the Franchise Agreement, and CITY WIDE will then have the right to reduce the size of your Designated Territory, grant additional franchises within the Designated Territory or to terminate your Franchise Agreement, however, you will have a period not to exceed one (1) year to cure such breach.
These Annual Revenue Per Capita Growth figures are not financial performance representations for your CITY WIDE Franchised Business. Other than as provided in ITEM 19, CITY WIDE does not furnish or authorize its salespersons to furnish any oral or written information concerning the actual or potential sales, costs, income or profits of a CITY WIDE Franchised Business. If your Franchise Agreement is renewed, your Annual Revenue Per Capita Growth must increase
Source: Item 12 — TERRITORY (FDD pages 36–39)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees must meet a minimum annual revenue per capita growth target to maintain their exclusive territory rights. Specifically, a City Wide franchisee is required to grow the gross revenues generated by their franchise by no less than $0.20 per person per year in their designated territory. This $0.20 rate is the current standard, but it is subject to annual adjustments based on the Consumer Price Index (CPI).
Beginning each fiscal year, City Wide may increase the Annual Revenue Per Capita Growth rate, with the adjustment based on the increase in the Consumer Price Index for all Urban Consumers, U.S. City Average (1982-84 = 100) published by the Bureau of Labor Statistics of the United States Department of Labor. However, this increase is capped at a maximum of 3% annually. City Wide will notify franchisees of any rate increases, and the updated rate will be reflected in the company's manual.
City Wide measures the Annual Revenue Per Capita Growth by calculating the average revenues generated by the franchisee's business over the preceding two years of operations. Failure to meet the Annual Revenue Per Capita Growth requirement in any twenty-four month period constitutes a material breach of the Franchise Agreement. In such cases, City Wide has the right to reduce the size of the franchisee's Designated Territory, grant additional franchises within the Designated Territory, or even terminate the Franchise Agreement. However, the franchisee is given a period not to exceed one year to cure the breach.
It is important to note that these Annual Revenue Per Capita Growth figures are not financial performance representations for the City Wide franchise. Prospective franchisees should be aware that City Wide does not furnish or authorize its salespersons to furnish any oral or written information concerning the actual or potential sales, costs, income, or profits of a City Wide franchise, except as provided in Item 19 of the FDD. If the Franchise Agreement is renewed, the Annual Revenue Per Capita Growth must increase by the per capita growth as stated in the Manual and in the then-current Franchise Disclosure Document, generated in the immediately preceding two (2) years of operations.