How were the quartiles in Table No. 2, Table No. 3, Table No. 4, and Table No. 5 determined for City Wide franchised locations?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Introduction to Table No. 2 through Table No. 5
Table No. 2, Table No. 3, Table No. 4, and Table No. 5 contain information about the financial performance of the 85 franchised locations that satisfied the Quartile Reporting Criteria during the twelvemonth period ending December 31, 2023, and the 93 franchised locations that satisfied the Quartile Reporting Criteria during the twelve-month period ending December 31, 2024. Specifically, the information in the four tables is organized into four quartiles ("Quartiles") which were determined based on the Gross Sales generated by those franchised locations during the respective fiscal year in descending order.
The first quartile is comprised of the 22 franchised locations that generated the most Gross Sales during the 2023 fiscal year and the 23 franchised locations that generated the most Gross Sales during the 2024 fiscal year ("First Quartile"); the second quartile is comprised of the next 21 franchised locations for the 2023 fiscal year and the next 23 locations for the 2024 fiscal year ("Second Quartile"); the third quartile is comprised of the next 21 franchised locations for the 2023 fiscal year and the next 23 franchised locations for the 2024 fiscal year ("Third Quartile"); and the fourth quartile is comprised of the remaining 21 franchised locations for the 2023 fiscal year and the remaining 24 franchised locations for the 2024 fiscal year ("Fourth Quartile").
The figures in Table No. 2(a), Table No. 3(a), Table No. 4(a), and Table No. 5(a) represent Monthly Gross Sales generated, and Net Royalties paid by franchisees during the first 12 months, 24 months, 36 months, 48 months, and 60 months of operations. The information is broken down by franchisee growth Quartiles as they existed on December 31, 2024.
The figures in Table No. 2(b)(i) and (ii), Table No. 3(b)(i) and (ii), Table No. 4(b)(i) and (ii), and Table No. 5(b)(i) and (ii) represent Annual Gross Sales experienced by franchisees in each of the four Quartiles for the 2023 and 2024 fiscal years resulting from the sale of CITY WIDE services during the 2024 fiscal year.
The figures in Table No. 2(c)(i) and (ii), Table No. 3(c)(i) and (ii), Table No. 4(c)(i) and (ii), and Table No. 5(c)(i) and (ii) represent Independent Labor Costs and Gross Margin as a percentage of Gross Sales experienced by franchisees relating to the sale of CITY WIDE services during the 2023 and 2024 fiscal years.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 48–58)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the financial performance data in Tables 2 through 5 is divided into quartiles based on Gross Sales. These tables include data from 85 franchised locations for the twelve-month period ending December 31, 2023, and 93 franchised locations for the twelve-month period ending December 31, 2024, that met specific reporting criteria.
The franchised locations are ranked by Gross Sales, and then divided into four groups. For 2023, the First Quartile contains the 22 locations with the highest Gross Sales, followed by the Second and Third Quartiles each containing the next 21 locations, and the Fourth Quartile containing the remaining 21 locations. For 2024, the First Quartile includes the 23 locations with the highest Gross Sales, followed by the Second and Third Quartiles each containing the next 23 locations, and the Fourth Quartile containing the remaining 24 locations.
The tables present Monthly Gross Sales and Net Royalties for franchisees in these quartiles over different periods (first 12, 24, 36, 48, and 60 months), as of December 31, 2024. The tables also show Annual Gross Sales for the 2023 and 2024 fiscal years, as well as Independent Labor Costs and Gross Margin as a percentage of Gross Sales for those years. These metrics offer prospective franchisees insight into the financial performance of City Wide franchises at different stages of growth and within different performance tiers.