To whom are the professional fees and license fees paid for a City Wide franchise?

According to City Wide's 2025 Franchise Disclosure Document, professional fees and license fees, which range from $8,000 to $12,000, are paid to approved suppliers, governmental agencies, accountants, and attorneys. These fees cover CPA expenses, legal and incorporation costs, and expenses related to reviewing the Franchise Agreement and establishing the franchised business. They also include costs for business licenses, permits, and training.

The FDD specifies that business license fees and similar fees must be paid before commencing operations, and these fees vary based on local or state government requirements. This means a prospective City Wide franchisee needs to budget for these variable costs and understand the specific requirements in their area. The range provided is an estimate, and actual costs could be higher or lower depending on the professionals and services chosen.

In the franchise industry, it is common for franchisees to incur professional fees for legal and accounting services during the setup phase. The fact that City Wide's FDD provides an estimated range and identifies the types of entities to whom these fees are paid offers transparency. Franchisees should research and compare different service providers to ensure they receive competitive rates and quality service. It is also important to verify the specific licensing and permit requirements in their locality to accurately budget for these expenses.