How often does City Wide measure the Annual Revenue Per Capita Growth requirement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Term or any Successor Term as outlined in the Manual. Franchisee shall not change the Location without CITY WIDE's approval. Franchisee shall give CITY WIDE at least thirty (30) days prior written notice of any such change and CITY WIDE shall have thirty (30) days within which to approve such Location and the proposed décor and signage. If CITY WIDE does not disapprove of such Location, décor or signage within such thirty (30) day period, same shall be deemed disapproved.
- 6.5 To retain rights to the Designated Territory, Franchisee must meet the annual revenue per capita growth ("Annual Revenue Per Capita Growth") in every year in the Term of the Agreement, as published on uscensus.gov. Specifically, Franchisee will be required to grow the gross revenues generated by the Franchised Business to no less than $0.20 per person per year. Franchisees must meet this requirement each year; however, CITY WIDE will measure this requirement using a three-year rolling average. CITY WIDE will measure Franchisee's Annual Revenue Per Capita Growth by calculating the average revenues generated by Franchisee's Franchised Business in the preceding two (2) years of operations. Each year thereafter, CITY WIDE will measure Franchisee's Annual Revenue Per Capita Growth by calculating the average revenues generated by Franchisee's Franchised Business in the immediately preceding two (2) years of operations. Each year thereafter, CITY WIDE will measure Franchisee's Annual Revenue Per Capita Growth by calculating the average revenues generated by Franchisee's Franchised Business in the immediately prec
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Annual Revenue Per Capita Growth is measured each year. However, City Wide calculates this metric using a three-year rolling average. Specifically, in the initial years of operation, City Wide measures the Annual Revenue Per Capita Growth by calculating the average revenues generated by the franchisee's business in the preceding two years.
Each year following the initial period, City Wide continues to measure the Annual Revenue Per Capita Growth by calculating the average revenues generated by the franchisee's business in the immediately preceding two years of operations. This ongoing assessment ensures that franchisees are consistently meeting the growth target of no less than $0.20 per person per year.
Failure to meet the Annual Revenue Per Capita Growth requirement, as measured by the rolling two-year average, constitutes a material breach of the Franchise Agreement. In such cases, City Wide reserves the right to reduce the size of the franchisee's Designated Territory, grant additional franchises within the Designated Territory, or even terminate the agreement. However, the franchisee is provided a cure period not to exceed one year to address the breach.