How will City Wide notify a franchisee of an increase to the Minimum Total Revenue Retention Requirement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
When the rate is increased, CITY WIDE will notify you and the increase will appear in the Manual.
- 7.20 Notification Requirements.
Franchisee will notify CITY WIDE promptly in writing prior to taking legal action against any customer, supplier or independent contractor, and Franchisee will notify CITY WIDE promptly in writing of any legal action of any kind or nature, filed against Franchisee by anyone during the term or extension of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, City Wide will notify franchisees of an increase to the Minimum Total Revenue Retention Requirement, and the increase will be reflected in the Manual.
The franchisee can adjust the Minimum Total Revenue Retention Requirement upon a 30-day prior written notice to Franchisee based upon the increase in the Consumer Price Index as currently measured by the Index as defined below, but not to exceed 3%. The Index is defined as the increase in the Consumer Price Index for all Urban Consumers, U.S. City Average (1982-84 = 100) published by the Bureau of Labor Statistics of the United States Department of Labor.
It is important for prospective franchisees to understand how City Wide calculates and adjusts this requirement, as failure to comply with the Minimum Total Revenue Retention Requirement constitutes a material default of the Franchise Agreement, potentially leading to termination. Franchisees should also note City Wide's right to take corrective action if the franchisee fails to comply with the requirement.