What is the minimum royalty fee for a City Wide franchise during its 14th month 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. |
You are required to pay to CITY WIDE a royalty fee ("Royalty Fee") the greater of 5% of total Gross Sales or the minimum Royalty Fee ("Minimum Royalty Fee"). "Gross Sales" includes all of the Franchised Business's revenues invoiced by anyone and in anyway resulting from the conduct and operation of your Franchised Business, or from any business which is derived from or similar
to the business activities embodied by the Franchised Business (See Section 3.5 of the Franchise Agreement). You must also pay CITY WIDE as an additional Royalty Fee a sum 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, or any consideration or fee you pay under this Agreement (but the taxes contemplated by the preceding clause do not include any income or corporate franchise tax imposed on CITY WIDE).
CITY WIDE will administer a royalty rebate program ("Royalty Rebate Program") through which you may be able to receive a royalty rebate ("Royalty Rebate") in a given calendar year if you exceed certain thresholds in Gross Sales in your Designated Territory and comply with CITY WIDE's system standards as set forth in the Operating Manual, as determined by CITY WIDE at its sole and absolute right (See Section 3.14 of the Franchise Agreement relating to the Royalty Rebate Program).
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 during the 14th month of operation depends on the population of the Designated Territory. For territories with over 1,000,000 in population, the minimum royalty fee for months 13-15 is $1,800 per month. For territories with under 1,000,000 in population, the minimum royalty fee for months 13-15 is $1,550 per month.
It is important to note that franchisees are required to pay City Wide the greater of 5% of total Gross Sales or the minimum Royalty Fee. Gross Sales includes all revenues invoiced 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 a government levies on City Wide due to 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 Royalty Rebate Program is determined by City Wide at its sole and absolute right.