What is the 'National Business Development Program' at City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
CITY WIDE has established a program focused on attracting and servicing clients that have a regional or national presence ("National Business Development Program").
All clients identified or generated by the National Business Development Program belong to CITY WIDE.
As of the date of this Agreement, there are two aspects of the National Business Development Program:
- 3.6.1.
CITY WIDE has established national accounts with national companies with locations all over the United States with whom CITY WIDE typically negotiates one contract for each personal account ("National Account Contract") for the provision of facility maintenance services for all the national account's locations ("Top Down Account").
CITY WIDE also might be designated a preferred vendor by a regional or national account ("Preferred Vendor Account").
Top-Down Accounts and Preferred Vendor Accounts are serviced either by CITY WIDE'S other franchisees or by an affiliate of CITY WIDE, Arete Facility Management, LLC ("Arete").
A Top-Down Account or a Preferred Vendor Account may not exist in your Designated Territory at the time this Agreement is signed, but a relationship with a Top-down Account or a Preferred vendor Account might be established by CITY WIDE after you enter into this Agreement.
Under the Top-Down Account approach, CITY WIDE may engage in any distribution channel to secure an order ("Order") for any System product or service calling for delivery or performance in Franchisee's Designated Territory. In the event CITY WIDE secures an Order in Franchisee's Designated
Territory, CITY WIDE will first offer the Order to Franchisee at the price CITY WIDE established with the Top-Down Account. If Franchisee is unwilling or unable to fulfill the Order CITY WIDE's affiliate, Arete or a third party CITY WIDE designee (including another franchisee) may fulfill that particular Order. Franchisee will not receive compensation for any Order Franchisee does not service.
If a Top-Down Account is in your Designated Territory and is serviced by either Arete or another franchisee in an adjacent territory to your Designated Territory, you will pay a fee to either Arete or another franchisee in the event you wish to take over servicing that Order. The fee you will pay is as outlined on Attachment B attached to this Agreement. If the National Account is being serviced by Arete, the fee you pay to Arete will be contributed to the National Marketing Fund.
The key characteristics of the aspects of the National Business Development Program are further described and outlined in the current Operating Manual.
Franchisee acknowledges and agrees Franchisee is required to participate and cooperate in the National Business Development Program, including by refraining from certain channels of marketing and distribution. The details of the National Business Development Program are included in the Operating Manual and other written communications from CITY WIDE. While CITY WIDE has the right to establish and maintain such a program, it has no obligation to do so; CITY WIDE reserves the right to modify or discontinue the National Business Development Business Program at any time upon written notice to Franchisee.
If Franchisee provides services to a National Account, Franchisee must carry the types and coverages of insurance required by each National Account Contract and Franchisee is solely responsible to ensure that any subcontractors Franchisee uses to perform the services to a National Account also carries the required types and coverages of insurance.
- 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, the National Business Development Program focuses on attracting and servicing clients with a regional or national presence. All clients identified or generated by this program belong to City Wide. The program has two aspects: National Account Contracts (Top-Down Accounts) and Preferred Vendor Accounts. City Wide negotiates National Account Contracts with national companies having locations across the United States for facility maintenance services. City Wide might also be designated as a preferred vendor by regional or national accounts.
Top-Down Accounts and Preferred Vendor Accounts are serviced either by City Wide's other franchisees or by Arete Facility Management, LLC, an affiliate of City Wide. If a Top-Down Account is secured by City Wide in a franchisee's designated territory, City Wide will first offer the order to the franchisee at the established price. If the franchisee is unable or unwilling to fulfill the order, Arete or a third-party designee, including another franchisee, may fulfill the order, and the franchisee will not receive compensation for the order they do not service.
Franchisees are required to participate and cooperate in the National Business Development Program, including adhering to specific marketing and distribution channels. The details of the program are included in the Operating Manual and other written communications from City Wide. However, City Wide retains the right to modify or discontinue the program at any time with written notice to the franchisee. If a franchisee provides services to a National Account, they must maintain the insurance types and coverages required by each National Account Contract and ensure that any subcontractors also carry the necessary insurance. Franchisees also pay a monthly royalty fee equal to the greater of 5% of gross sales (including National Accounts) or the minimum Royalty Fee.