Who pays the sub-licensing fees for the software used by a City Wide franchisee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
two (2) times during any calendar year.
- 11.9 Late Payments or Failure to Pay, Default. Franchisee acknowledges that nothing contained in this Agreement constitutes agreement by CITY WIDE to accept any payments after they are due or to extend credit to or otherwise finance Franchisee's operation of the Franchised Business. Further, Franchisee acknowledge that Franchisee's failure to pay all amounts when due will constitute a material default and grounds for termination of this Agreement.
- 11.10 Software. Franchisee will use exclusively and pay all sub-licensing fees to CITY WIDE for the software ("Software") in Franchisee's Franchised Business during the term of this Agreement, as set forth in the Operating Manual or otherwise in writing.
- 11.11 Internet Access and E-Mail Address.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, the franchisee is responsible for paying all sub-licensing fees for the software used in their franchised business. These fees are paid directly to City Wide. The specific amounts and payment terms for these sub-licensing fees are detailed in the City Wide Operating Manual or in other written communications from the franchisor.
In addition to the sub-licensing fees, the franchisee is also responsible for the costs associated with enterprise upgrades and replacements of any equipment required to operate the software. Furthermore, the franchisee must subscribe to a high-speed internet access provider that meets City Wide's standards and specifications. They are also required to use a City Wide-provided email address for their franchised business operations.
Prospective City Wide franchisees should carefully review the Operating Manual and any related documents to fully understand the costs and obligations associated with the required software. It is important to factor in these ongoing technology expenses when evaluating the overall financial viability of the franchise. Understanding these costs upfront will help ensure there are no unexpected financial burdens after the franchise agreement is signed.