Who is responsible for covering the expenses for individuals attending City Wide's training program?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Travel and Living Expenses While Training: You must participate in CITY WIDE's training programs. You must involve your Manager (as defined in ITEM 15) in all CITY WIDE training programs as stated in ITEM 11 of this Disclosure Document. The fee for the initial training program is covered by the Initial Franchise Fee. However, you must make arrangements for and pay the expenses of any persons attending the training program on your behalf, including transportation, lodging, meals and wages. The amount will depend, in part, on the distance you must travel and the type of accommodation you choose. The estimate is for attendance by two people.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–24)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, while the initial training program fee is covered by the initial franchise fee, the franchisee is responsible for covering the expenses of individuals attending the training program on their behalf. This includes costs related to transportation, lodging, meals, and wages. The FDD estimates these travel and living expenses to range from $4,000 to $10,000, depending on factors such as distance traveled and accommodation choices. The estimate is based on attendance by two people.
This means that a prospective City Wide franchisee needs to budget for these additional expenses on top of the initial franchise fee and other startup costs. It is important to factor in the cost of travel and accommodation for both the franchisee and their manager, as the FDD specifies the manager's involvement in the training programs. These costs are incurred during the training period and before the franchise opens for business.
Franchisees will need to make their own arrangements and payments directly to airlines, hotels, restaurants, car rental companies, and other vendors. This differs from fees paid directly to City Wide, offering the franchisee some control over the amount spent based on their choices. However, it also adds to the administrative burden of setting up the franchise.
Prospective franchisees should carefully consider these costs when evaluating the overall investment required to start a City Wide franchise. It would be prudent to research travel and lodging options in advance to get a more accurate estimate of these expenses based on the training location and duration.