What is the minimum Royalty Fee that a City Wide franchisee must pay per month?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.7 Recurring Fees. Beginning on the first day that the Franchised Business is open for business to the public as determined by CITY WIDE and continuing through the Term of this Agreement, Franchisee must pay CITY WIDE the following recurring fees without offset, credit or deduction of any nature:
- 3.7.1 Royalty Fee. A monthly royalty fee ("Royalty Fee") equal to the greater of five percent (5%) of the Gross Sales (including National Accounts) or the minimum Royalty Fee ("Minimum Royalty Fee"), as outlined in the appropriate chart below:
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 the greater of 5% of gross sales (including National Accounts) or a minimum royalty fee. The exact amount of the minimum royalty fee is outlined in a chart, but the excerpt does not include the specific figures from that chart.
In addition to the royalty fee, franchisees may also be required to pay other recurring fees, such as a marketing fee of up to 1% of monthly gross sales, an accounting services fee (currently $1,500 per month), a business development services fee (currently $3,500 per month), a national technology development fee ($1,864 per month), an information technology services fee ($120 per month), a City Wide You fee ($1,000 per year), and a City View IT project fee ($300 per month).
Prospective franchisees should carefully review the referenced chart in Section 3.7.1 of the FDD to understand the specific minimum royalty fee applicable to their franchise agreement. They should also inquire about any potential variations in these fees based on their individual circumstances or elected service levels. Understanding the full scope of recurring fees is crucial for accurate financial planning.