Who is responsible for the costs of computer hardware upgrades and replacements required to operate the City Wide Franchised Business?

According to City Wide's 2025 Franchise Disclosure Document, the franchisee is responsible for covering the costs of all computer hardware upgrades and replacements of all equipment needed to run the Franchised Business. This means that while City Wide provides the initial Technology System, including software, the ongoing maintenance and modernization of the hardware infrastructure falls to the franchisee.

This allocation of responsibility has significant implications for a prospective City Wide franchisee. It means budgeting not only for the initial technology investment, which includes purchasing a Technology System from City Wide for approximately $12,500, but also for the lifecycle costs of the hardware. Hardware can become obsolete or fail, necessitating periodic upgrades or replacements to maintain operational efficiency. These costs can vary depending on the specific hardware requirements and market prices at the time of replacement.

While City Wide offers IT Services for the first 36 months of operation, this support focuses on troubleshooting and software updates, not hardware maintenance or replacement. Therefore, franchisees need to factor in the potential for unplanned expenses related to hardware issues. This is a fairly standard arrangement in franchising, where franchisees often bear the responsibility for maintaining and updating their own equipment, while the franchisor focuses on software and system-wide support. A prospective franchisee should inquire about the typical lifespan of the hardware and estimated upgrade costs to better prepare their financial projections.