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What is the minimum monthly royalty fee for a City Wide franchise that has been in operation for 8 months?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

If Franchisee's monthly Royalty Fees from all sources total less than the Minimum Royalty Fees outlined in the Minimum Royalty Fee charts outlined in Section 3.7.1 above, then the applicable Minimum Royalty Fees shall be paid by Franchisee to CITY WIDE.

Source: Item 22 — CONTRACTS (FDD page 65)

What This Means (2025 FDD)

According to the 2025 City Wide FDD, franchisees must pay a monthly royalty fee, which is the greater of 5% of gross sales or a minimum royalty fee. The exact minimum royalty fee amount depends on which chart applies, as designated by City Wide. If the franchisee's monthly royalty fees from all sources are less than the minimum royalty fees outlined in the charts, the franchisee must pay the applicable minimum royalty fee to City Wide. Since the specific minimum royalty fee chart is not included in the provided documentation, the exact minimum royalty fee for a City Wide franchise in operation for 8 months cannot be determined.

It is important to note that the FDD mentions several other fees that City Wide franchisees must pay, including a marketing fee of up to 1% of monthly gross sales, accounting services fees, business development services fees, a national technology development fee of $1,864 per month, an information technology services fee of $120 per month, a City Wide You fee of $1,000 per year, and a City View IT project fee of $300 per month. These fees, along with the royalty fee, contribute to the ongoing financial obligations of a City Wide franchisee.

To determine the minimum monthly royalty fee for a City Wide franchise that has been in operation for 8 months, a prospective franchisee should consult the specific Minimum Royalty Fee charts referenced in Section 3.7.1 of the Franchise Agreement. This information is crucial for understanding the full scope of financial obligations and potential profitability of a City Wide franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.