What is the minimum royalty fee for a City Wide franchise during its 10th to 12th months of operation?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Months in Operation | Minimum Royalty Fee | |
|---|---|---|
| 1-6 months | No Minimum Royalty Fee | |
| 7-9 months | $1,000/mo. | |
| 10-12 months | $1,400/mo. | |
| 13-15 months | $1,800/mo. | |
| 16-18 months | $2,250/mo. | |
| 19-21 months | $2,700/mo. | |
| 22-24 months | $3,150/mo. | |
| 25 -36 months | $3,600/mo. | |
| 37 and all months thereafter | $5,000/mo. | |
| Months in Operation | Minimum Royalty | |
| --- | --- | --- |
| 1-6 months | No Minimum Royalty Fee | |
| 7-9 months | $750/mo. | |
| 10-12 months | $1,150/mo. | |
| 13-15 months | $1,550/mo. | |
| 16-18 months | $2,000/mo. | |
| 19-21 months | $2,450/mo. | |
| 22-24 months | $2,900/mo. | |
| 25 and all months thereafter | $3,350/mo. |
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the minimum royalty fee payable by a franchisee varies based on the number of months the franchise has been in operation and the population of the designated territory. For a territory with over 1,000,000 in population, the minimum royalty fee for months 10-12 is $1,400 per month. For territories with under 1,000,000 in population, the minimum royalty fee for months 10-12 is $1,150 per month.
It is important to note that the franchisee is required to pay City Wide the greater of 5% of total Gross Sales or the minimum Royalty Fee. Gross Sales includes all revenues invoiced by anyone resulting from the operation of the franchised business. Franchisees must also pay City Wide an additional Royalty Fee equal to any excise, sales, or privilege tax that any government or governmental agency levies or imposes on City Wide on account of the Franchise Agreement.
City Wide also administers a Royalty Rebate Program through which franchisees may be able to receive a royalty rebate in a given calendar year if they exceed certain thresholds in Gross Sales in their Designated Territory and comply with City Wide's system standards as set forth in the Operating Manual. The franchisor determines the standards at its sole and absolute right.