When is the Successor Fee due to City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
4 months | $2,900/mo. | | | 25 and all months thereafter | $3,350/mo. | | | Type of Fee1 | Amount | Due Date | Remarks | |-------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | you under the franchise | | | | | agreement | | | | | (including the Initial | | | | | Fees). The Transfer Fee is in | | | | | addition to any third-party | | | | | broker fee. No Transfer Fee is | | | | | assessed for a transfer to your | | | | | survivor. | | Audit | Amount of underpayment, plus interest at highest legal rate, not to exceed 10%. If underpayment is 2% or more, you must reimburse CITY WIDE for its audit costs. Audit costs may run as much as $6,000. | Upon billing by CITY WIDE. | Payable only if audit shows an understatement of at least 2% of Gross Sales for any month.
Source: Item 6 — OTHER FEES (FDD pages 16–20)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Successor Fee is due at the time of signing the Successor Franchise Agreement. This fee is 50% of the then-current Initial Franchise Fee.
This fee applies if a franchisee meets the conditions to be granted an additional term once the current term of their Franchise Agreement expires. In other words, if a franchisee wants to renew their franchise agreement for another term, they will need to pay this Successor Fee at the time they sign the new agreement.
It is important for prospective franchisees to understand the conditions under which a successor franchise agreement is granted and to factor this potential cost into their long-term financial planning. Franchisees should review their franchise agreement carefully to understand the specific conditions and requirements for renewal.