What recurring fees are City Wide franchisees required to pay?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
3.7 Recurring Fees. Beginning on the first day that the Franchised Business is open for business to the public as determined by CITY WIDE and continuing through the Term of this Agreement, Franchisee must pay CITY WIDE the following recurring fees without offset, credit or deduction of any nature:
3.7.1 Royalty Fee. A monthly royalty fee ("Royalty Fee") equal to the greater of five percent (5%) of the Gross Sales (including National Accounts) or the minimum Royalty Fee ("Minimum Royalty Fee"), as outlined in the appropriate chart below:
3.9 Taxes and Royalty Fee.
At all times after Franchisee execute this Agreement, Franchisee must pay CITY WIDE as an additional Royalty Fee a sum equal to any excise, sales, or privilege tax that any government or governmental agency levies or imposes on CITY WIDE on account of this Agreement or any consideration or fee Franchisee pay under this Agreement (but the taxes contemplated by the preceding clause do not include any income or corporate franchise tax imposed on CITY WIDE).
If a Top-Down Account is in your Designated Territory and is serviced by either Arete or another franchisee in an adjacent territory to your Designated Territory, you will pay a fee to either Arete or another franchisee in the event you wish to take over servicing that Order. The fee you will pay is as outlined on Attachment B attached to this Agreement. If the National Account is being serviced by Arete, the fee you pay to Arete will be contributed to the National Marketing Fund.
If any report is not made or any fee or any other amount due under this Agreement is not delivered or paid to CITY WIDE on or before the date due, Franchisee must pay the greater of Thirty Dollars ($30) plus interest at the highest rate of interest then permitted by applicable law of the state where the Franchised Business is located for each day such amount is past due.
If Franchisee fails to attend a National Meeting without the prior written consent of CITY WIDE, Franchisee will be assessed a non-attendance fee of $2,000, or the then current fee as stated in the Operating Manual, which Franchisee agrees to promptly pay.
Franchisee agrees to comply with any other schedule or method of making payments or reports that CITY WIDE may require from time to time in the Operating Manual.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees must pay several recurring fees throughout the term of their agreement. The most prominent of these is the Royalty Fee, which is a monthly fee equal to the greater of 5% of Gross Sales (including National Accounts) or a Minimum Royalty Fee.
Franchisees must also pay any excise, sales, or privilege tax that a government or governmental agency levies on City Wide due to the franchise agreement or any fees paid under it. These taxes do not include income or corporate franchise taxes imposed on City Wide. If a franchisee wishes to take over servicing a Top-Down Account in their Designated Territory that is currently serviced by Arete (City Wide's affiliate) or another franchisee, they will have to pay a fee as outlined in Attachment B of the Franchise Agreement.
Additionally, if a franchisee is late on any payments, they will be charged the greater of $30 plus interest at the highest rate permitted by law in the state where the franchised business is located for each day the amount is past due. If a franchisee fails to attend a National Meeting without prior written consent from City Wide, they will be assessed a non-attendance fee of $2,000, or the current fee as stated in the Operating Manual. City Wide retains the right to modify the fees, and the franchisee is obligated to comply with any payment schedule or method City Wide requires.