factual

What does the price of City Wide's local advertising and marketing materials include?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

From time to time CITY WIDE may provide Franchisee with local advertising and marketing materials, including without limitation, merchandising materials, sales aids, special promotions, and similar marketing materials, at a price equal to their cost, including allocable overhead, to CITY WIDE plus ten percent (10%).

Source: Item 22 — CONTRACTS (FDD page 65)

What This Means (2025 FDD)

According to City Wide's 2025 Franchise Disclosure Document, if City Wide provides a franchisee with local advertising and marketing materials, the price will be equal to City Wide's cost, including allocable overhead, plus ten percent. These materials may include merchandising materials, sales aids, special promotions, and similar marketing materials.

This means a City Wide franchisee will not only pay for the direct costs City Wide incurs in producing these materials, but also a 10% markup. This markup likely covers City Wide's administrative costs and profit margin on providing these materials. Franchisees need to factor this additional cost into their marketing budget when considering purchasing materials directly from City Wide.

It is important for prospective franchisees to evaluate whether purchasing marketing materials from City Wide is the most cost-effective option. They should compare the total cost, including the markup, with the cost of sourcing similar materials from alternative suppliers, keeping in mind that City Wide must approve all marketing and advertising materials.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.