What minimum ownership interest in the City Wide franchisee must the Manager hold?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Manager must own at least a twenty percent (20%) interest in Franchised Business (if Franchisee is an entity, Manager must own twenty percent (20%) of the entity that owns the Franchised Business); provided however, that CITY WIDE may agree to an alternative arrangement (other than direct ownership by the Manager) in exceptional circumstances.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 43)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, if a franchisee wishes to appoint a Manager to handle the daily operations of the business, that Manager must hold at least a 20% ownership interest in the City Wide franchise. If the franchisee is an entity, the Manager must own 20% of that entity.
This requirement ensures that the Manager has a vested interest in the success of the franchise and is motivated to operate the business effectively. City Wide may, however, agree to an alternative arrangement other than direct ownership in exceptional circumstances.
In addition to the ownership stake, the Manager must also meet the criteria City Wide uses for approving new franchisees, have the necessary experience to operate the franchise according to the Operating Manual, and live full-time within the designated territory. The Manager must also sign the Guaranty and Assumption of Obligations, the Confidentiality Agreement, and the Non-Compete Agreement. City Wide reserves the right to request proof of residency and documentation verifying the Manager's ownership interest.
These conditions are designed to ensure that the Manager is qualified, committed, and compliant with City Wide's standards, protecting the brand and the interests of other franchisees.