What is the minimum royalty fee for a City Wide franchise that has been in operation for 22-24 months?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
hs | $2,250/mo. |
| Months in Operation | Minimum Royalty Fee |
|---|---|
| 19-21 months | $2,700/mo. |
| 22-24 months | $3,150/mo. |
| 25 -36 months | $3,600/mo. |
| 37 and all months | $5,000/mo. |
| thereafter |
*As designated by City Wide at its sole and absolute right
**City Wide Minimum Royalty Fee Chart (Under
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees must pay a monthly royalty fee, which is either 5% of gross sales or a minimum royalty fee, whichever is greater. The minimum royalty fee is dependent on how long the franchise has been in operation. For a City Wide franchise that has been operating for 22-24 months, the minimum royalty fee is $2,900 per month.
This means that even if 5% of a franchisee's gross sales is less than $2,900 during months 22-24, they must still pay City Wide $2,900 for that month. This minimum royalty fee ensures that City Wide receives a baseline income from each franchise, regardless of its sales performance.
Prospective franchisees should carefully consider this minimum royalty fee and ensure they have sufficient capital to cover it, especially during the early stages of operation when sales may be lower. It's also important to note that this minimum royalty fee is in addition to other fees, such as the marketing fee and any applicable taxes.