To whom is the real estate/rent deposit paid for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure1 | Amount | payment | When Due | is to be Made |
|---|---|---|---|---|
| Real Estate / Rent Deposit6 | $6,000 to $12,000 | As Arranged | Before Opening | Your Landlord |
| Utility and Security | $0 to $3,000 | As Arranged | Before Opening | Landlord and Utility |
| Deposits9 | Companies |
(6) Real Estate/Rent Deposit: Rent expense (sometimes first month's rent required in advance) for the Location (as defined in ITEM 11) will vary based on location and square footage, and other factors. CITY WIDE anticipates that you will need approximately 1,000 to 2,000 square feet of usable floor space, located in a commercial office building.
(9) Utility and Security Deposits: You may need to pay a lease deposit (typically the last month's rent) before you can enter the premises.
Utility companies may require you to place a deposit and/or pay an installation fee before occupying the premises or installing telephone, gas, electricity and related utility services.
These deposits may be refundable under agreements made with the landlord and utility companies.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–24)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the real estate/rent deposit is paid to the franchisee's landlord. This deposit, estimated to be between $6,000 and $12,000, is typically required before opening the City Wide franchise.
This deposit covers rent expenses, potentially including the first month's rent in advance, for a commercial office space ranging from 1,000 to 2,000 square feet. The actual rent expense will vary depending on factors such as location and square footage.
In addition to the rent deposit, the franchisee may also need to pay utility and security deposits to the landlord and utility companies before occupying the premises. These deposits may be refundable based on agreements made with the landlord and utility companies.