When is the City Wide Successor Fee due?
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. | | Successor Fee | 50% of the then current Initial Franchise Fee. | At the time of signing the Successor Franchise Agreement. | The Successor Fee is paid if you meet the conditions to be granted an additional term once the current term of your Franchise Agreement expires. | | Additional Franchisee In-Person Training or On-site Assistance or Supervision | $330 - $750 per person per day plus actual expenses. | At time of training. | Payable if you request or require additional training or request on-site assistance or supervision, for yourself or any of your personnel. These charges may vary based upon the actual time spent by CITY WIDE's staff and the duration of the training or assistance provided. | | Additional Franchisee Online Training | Up to $600 per month. | At time of training. | Payable if you request or require additional training for yourself or any of your personnel relating to online training. | | CITY WIDE's Operation of Franchised Business | $500 per day plus actual expenses. | 30 days after date of billing. | CITY WIDE may elect to operate the Franchised Business upon your death, incapacity or illness. | | Legal Fees and Indemnification | Actual costs of suit, attorneys and accountants' fees incurred by CITY WIDE. | Upon billing by CITY WIDE. | You must hold harmless and indemnify CITY WIDE for damages from the operation of your Franchised Business. | | Prospective Supplier Sample Tests | Actual costs of testing, which may exceed $1,000. | 30 days after date of billing. | These costs are only for non approved suppliers submitted to CITY WIDE for approval. | | National Meetings | $650 national attendance fee, plus the actual costs of travel, food and hotels. If you fail to attend or send an authorized representative (approved by CITY WIDE in advance) | Due at the time of meeting. | National Meetings are not expected to occur more than once a year. You are required to attend all
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.
The Successor Fee is paid if a franchisee meets the conditions to be granted an additional term once the current term of their Franchise Agreement expires. This means that if a franchisee wishes to continue operating their City Wide franchise beyond the initial term, they will need to pay this fee to renew their agreement, assuming they meet the requirements for renewal.
Franchise agreements typically have an initial term, and renewal is not always guaranteed. The conditions for renewal are usually outlined in the franchise agreement. For a City Wide franchise, understanding these conditions and planning for the Successor Fee is an important aspect of long-term business planning.