Does the Successor Addendum mention any fees associated with the agreement between City Wide and the franchisee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Attachment J-1
Franchise Fees and Ongoing Payment Obligations of Franchisee. Section 3.1 of the Successor Franchise Agreement is deleted in its entirety and replaced with the following:
- (a) Successor Fee.
Contemporaneously with Franchisee's execution of this Agreement, Franchisee must pay CITY WIDE a Successor Fee equal to fifty percent (50%) of CITY WIDE's current Initial Franchise Fee of $________________ for the right to continue operating the Franchised Business in the Designated Territory set forth in Attachment B.
Franchisee must pay by certified or cashier's check, or by other payment methods as designated at CITY WIDE's sole and absolute right, the receipt of which CITY WIDE acknowledges by signing this Agreement.
The Successor Fee will be deemed fully earned upon its payment and is non-refundable.
Technology Provisioning Fee. Section 3.2 of the Successor Franchise Agreement is deleted in its entirety.
Reference to the Technology Provisioning Fee in Section 3.1 is hereby deleted.
Proof of Sufficient Assets. Section 3.3 of the Successor Franchise Agreement is deleted in its entirety.
Recurring Fees.
The paragraph comprising Section 3.7 of the Successor Franchise Agreement is deleted in its entirety and replaced with the following:
- "3.7 Recurring Fees.
Beginning on the first day that the Franchised Business is open for business to the public 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:"
Franchise Fees and Ongoing Payment Obligations of Franchisee. Section 3.7.1 of the Successor Franchise Agreement is deleted in its entirety and replaced with the following:
- "a.
The greater of five percent (5%) of the Gross Sales or the minimum Royalty Fee ("Minimum Royalty Fee") of $5,000 per month."
Accounting Services Fee. Section 3.7.3 of the Successor Franchise Agreement is deleted in its entirety.
Business Development Services Fee. Section 3.7.4 of the Successor Franchise Agreement is here by deleted in its entirety.
Information Technology Services Fee. Section 3.7.6 of the Successor Franchise Agreement is hereby deleted in its entirety.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Successor Addendum outlines several fees associated with the agreement. Specifically, franchisees must pay a Successor Fee equal to 50% of City Wide's current Initial Franchise Fee. This fee is required to continue operating the franchised business in the designated territory. The Successor Fee is due upon execution of the agreement and is non-refundable.
Additionally, the Successor Addendum modifies the recurring fees that franchisees must pay. The addendum states that franchisees must pay the greater of 5% of gross sales or a minimum royalty fee of $5,000 per month.
The Successor Addendum also removes the Technology Provisioning Fee, Accounting Services Fee, and Business Development Services Fee, and Information Technology Services Fee from the agreement. These modifications to the fee structure are important for prospective franchisees to consider when evaluating the financial implications of renewing their franchise agreement with City Wide.