For what period is the Minimum Total Revenue Retention Requirement measured for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
The total revenue retention of Franchisee's Franchised Business must not fall below seventy-seven and five-tenths percent (77.5%) for any rolling twenty-four (24) month period for Franchisee's Business ("Minimum Total Revenue Retention Requirement"), as determined by CITY WIDE in its sole and absolute discretion.
Franchisee acknowledges and agrees that Franchisee's failure to comply with the Minimum Total Revenue Retention Requirement shall constitute a material default of this Agreement for which CITY WIDE may terminate this Agreement.
In the event that Franchisee fails to comply with the Minimum Total Revenue Retention Requirement, CITY WIDE also reserves the right to take corrective action with respect to Franchisee's Franchised Business, which may include the implementation of a plan with which Franchisee agrees to comply.
Franchisee may 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%.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Minimum Total Revenue Retention Requirement is assessed over a rolling 24-month period. This means that City Wide evaluates a franchisee's revenue retention on an ongoing basis, considering the most recent two years of business operations.
Specifically, City Wide requires that a franchisee's total revenue retention not fall below 77.5% during any rolling 24-month period. If a franchisee fails to meet this Minimum Total Revenue Retention Requirement, it constitutes a material breach of the franchise agreement, potentially leading to termination of the agreement by City Wide.
City Wide retains the discretion to determine whether a franchisee has met the Minimum Total Revenue Retention Requirement. In the event of non-compliance, City Wide may implement a corrective action plan for the franchisee's business. The franchisee has the option to adjust the Minimum Total Revenue Retention Requirement based on increases in the Consumer Price Index, with a maximum increase of 3%, provided they give City Wide 30 days prior written notice.