What is the renewal fee (Successor Fee) for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.2.10 Franchisee must pay CITY WIDE a renewal fee ("Successor Fee") equal to fifty percent (50%) of the then-current Initial Franchise Fee set forth in the Franchise Disclosure Document , at the time Franchisee executes the Successor Franchise Agreement which amount will be instead of payment of a new Initial Franchise Fee.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee must pay a renewal fee, called a "Successor Fee," to renew their franchise agreement. This fee is equal to fifty percent (50%) of the then-current Initial Franchise Fee at the time the franchisee executes the Successor Franchise Agreement. This Successor Fee is paid instead of paying a new Initial Franchise Fee.
To be eligible for a Successor Term, the franchise agreement must be in full force and effect, and the franchisee must provide written notice to City Wide of their desire to enter into a Successor Term not less than one year before the expiration of the current term. City Wide will then inspect the franchised business and equipment at least ninety days before the term expires, notifying the franchisee of any required maintenance or upgrades, which the franchisee must complete at their own expense within thirty days of the term's expiration.
The Successor Franchise Agreement supersedes the original agreement and may contain different terms, including potentially higher Royalty Fees and Marketing Fees. The franchisee must also meet City Wide's current criteria for operating a franchised business, including qualification and training requirements, and must not be in default of any agreements with City Wide. All monetary obligations to City Wide must be satisfied to qualify for renewal.