What is the minimum Annual Revenue Per Capita Growth required for City Wide franchisees?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Term or any Successor Term as outlined in the Manual. Franchisee shall not change the Location without CITY WIDE's approval. Franchisee shall give CITY WIDE at least thirty (30) days prior written notice of any such change and CITY WIDE shall have thirty (30) days within which to approve such Location and the proposed décor and signage. If CITY WIDE does not disapprove of such Location, décor or signage within such thirty (30) day period, same shall be deemed disapproved.
- 6.5 To retain rights to the Designated Territory, Franchisee must meet the annual revenue per capita growth ("Annual Revenue Per Capita Growth") in every year in the Term of the Agreement, as published on uscensus.gov. Specifically, Franchisee will be required to grow the gross revenues generated by the Franchised Business to no less than $0.20 per person per year. Franchisees must meet this requirement each year; however, CITY WIDE will measure this requirement using a three-year rolling average. CITY WIDE will measure Franchisee's Annual Revenue Per Capita 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 Franchisee's Annual Revenue Per Capita Growth by calculating the average revenues generated by Franchisee's Franchised Business in the immediately preceding two (2) years of operations. Each year thereafter, CITY WIDE will measure Franchisee's Annual Revenue Per Capita Growth by calculating the average revenues generated by Franchisee's Franchised Business in the immediately prec
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees must achieve a minimum Annual Revenue Per Capita Growth to maintain their territory rights. This growth is set at $0.20 per person per year, based on data published on uscensus.gov. City Wide assesses this requirement using a three-year rolling average, calculated from the average revenues of the franchisee's business over the preceding two years.
This metric is crucial because failure to meet the Annual Revenue Per Capita Growth can lead to significant consequences. If a City Wide franchisee does not meet this growth requirement, it 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 that territory, or even terminate the agreement altogether.
However, City Wide provides a one-year period for the franchisee to correct the breach. This cure period offers an opportunity for the franchisee to improve their performance and avoid the potential loss of territory or termination of the agreement. This requirement ensures that franchisees are actively working to grow their business and maximize their market potential, which aligns with City Wide's overall growth strategy.
Furthermore, City Wide may adjust the Annual Revenue Per Capita Growth based on increases in the Consumer Price Index, but this adjustment will not exceed 3%. This adjustment mechanism helps to account for inflation and changing economic conditions, ensuring that the growth target remains reasonable and achievable for franchisees. Franchisees should stay informed about any adjustments to this metric, as they will be notified by City Wide and the updated rate will be reflected in the Operating Manual.