What is the purpose of the City Wide Marketing Fund?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
The Marketing Fund ("Fund") is used to fund research and development, placement of media, creation of national and international marketing and advertising materials, promotion and marketing of the franchise system, and development of the National Business Development Program and is funded by the franchisees. The Fund is currently 1% of your total gross sales, or as set forth in the Operating Manual. The business which is operated by CITY WIDE does not contribute to the Fund on the same basis as the franchisees. The Fund is administered by CITY WIDE accounting and marketing personnel. An annual audited financial statement of the Fund is available to any franchisee upon request. CITY WIDE is not required to spend any amount on advertising in the designated territory where the franchise is located. No advertising expenditures from the Fund will be devoted principally to the sale of new franchises. Any amounts remaining in the Fund at the end of the Fund fiscal year will be carried over to the next succeeding year. The accounting/financial statements for the Fund will be made available every year to you, upon your request by telephone or written correspondence. During CITY WIDE's last fiscal year which ended on December 31, 2024, CITY WIDE spent 71.5% of the Fund on the National Business Development Program; 26.9% on general marketing activities and 1.6% on local sales consulting and coaching. The entire amount was spent on other purposes such as sales staff expense, sales activities, digital marketing, marketing staff, NBD operations and accounting and customer appreciation. None of these funds were spent to solicit new franchise sales.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 29–36)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Marketing Fund is used to support various aspects of the franchise system's growth and marketing efforts. The fund is used for research and development, media placement, creation of marketing and advertising materials at both national and international levels, and the general promotion and marketing of the City Wide franchise system. It also supports the development of the National Business Development Program. Franchisees contribute to this fund, which is currently set at 1% of their total gross sales, although this percentage can be adjusted as outlined in the Operating Manual.
City Wide's corporate owned business does not contribute to the fund on the same basis as franchisees. The fund is managed by City Wide's accounting and marketing personnel. Franchisees can request an annual audited financial statement of the Fund to review its financial activities. City Wide is not obligated to spend any specific amount on advertising within the franchisee's designated territory. The FDD specifies that the funds are not to be used for the sale of new franchises. Any unspent funds at the end of the fiscal year are carried over to the next year.
For the fiscal year ending December 31, 2024, City Wide allocated 71.5% of the Marketing Fund to the National Business Development Program, 26.9% to general marketing activities, and 1.6% to local sales consulting and coaching. The remaining funds were used for sales staff expenses, sales activities, digital marketing, marketing staff, NBD operations and accounting, and customer appreciation. This breakdown gives prospective franchisees insight into how the fund is being utilized to support the City Wide brand and its franchisees.