What section outlines the payment details for the City Wide Marketing Fund?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| 9-21 months | $2,450/mo. |
|---|---|
| 22-24 months | $2,900/mo. |
| 25 and all months | $3,350/mo. |
| thereafter |
*As designated by City Wide at its sole and absolute right
If Franchisee's monthly Royalty Fees from all sources total less than the Minimum Royalty Fees outlined in the Minimum Royalty Fee charts outlined in Section 3.7.1 above, then the applicable Minimum Royalty Fees shall be paid by Franchisee to CITY WIDE.
3.7.2 Marketing Fee.
(a) Marketing Fund. A marketing fee ("Marketing Fee") will be assessed to fund research and development, placement of media and creation of national and international marketing and advertising materials, promotion and marketing of the franchise system, and development of the National Business Development Program in an amount equal to up to one percent (1%) of Franchisee's monthly Gross Sales, or as outlined in the Operating Manual. Franchisee must make all such payments to
the CITY WIDE Marketing Fund ("Fund"). CITY WIDE or its designee may expend amounts in the Fund by the terms of Section 10 of this Agreement.
- (b) Local Advertising. Franchisee must spend at least $1,200 annually on Franchisee's own advertising and promotion as outlined in the Operating Manual.
- 3.7.3 Accounting Services Fee.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, Section 3.7.2(a) and Section 10 of Item 22 outline the payment details for the Marketing Fund. Specifically, Section 3.7.2(a) states that a marketing fee will be assessed to fund research and development, placement of media and creation of national and international marketing and advertising materials, promotion and marketing of the franchise system, and development of the National Business Development Program. This fee is up to one percent (1%) of the Franchisee's monthly Gross Sales, or as outlined in the Operating Manual. Franchisees must make all such payments to the City Wide Marketing Fund.
Section 10 further details how City Wide or its designee may expend amounts in the Fund. This section also mentions that the fund will consist of all amounts paid by franchisees under Section 3.7.2(a) and similar fees paid by other franchisees operating City Wide Franchised Businesses under the System. City Wide retains sole and absolute right over the concepts, materials, staffing, and media used for marketing and national business development.
Prospective franchisees should carefully review both Section 3.7.2(a) and Section 10 of Item 22, along with the Operating Manual, to fully understand the obligations and guidelines related to the Marketing Fund. Understanding how the Marketing Fund is used and managed is crucial for assessing the value and potential return on investment for this fee.