What is the Successor Fee for a City Wide franchise, and when is it paid?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
by CITY WIDE at the time Franchisee renews, including the Successor Addendum (See Attachment J) (collectively, "Successor Franchise Agreement"), which Successor Franchise Agreement will in all respects supersede this Agreement and the terms of which may differ from the terms of this Agreement, including, without limitation, a higher percentage Royalty Fee (See Section 3.7.1) and Marketing Fee (See Section 3.7.2(a).
- 2.2.10 Franchisee must pay CITY WIDE a renewal fee ("Successor Fee") equal to fifty percent (50%) of the then-current Initial Franchise Fee set forth in the Franchise Disclosure Document , at the time Franchisee executes the Successor Franchise Agreement which amount will be instead of payment of a new Initial Franchise Fee.
- 2.2.11 Franchisees must comply with CITY WIDE's then-current criteria for operating a Franchised Business, including CITY WIDE's then-current franchisee qualification and training requirements.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee must pay a Successor Fee to renew their franchise agreement. The Successor Fee is equal to fifty percent (50%) of City Wide's then-current Initial Franchise Fee. The exact dollar amount of the Initial Franchise Fee at the time of renewal is not specified in this document.
The Successor Fee must be paid when the franchisee executes the Successor Franchise Agreement. Payment must be made via certified or cashier's check, or by other payment methods designated by City Wide. Once paid, the Successor Fee is considered fully earned and is non-refundable.
To renew the franchise agreement, the franchisee must not be in default of any agreements with City Wide or its affiliates, must have substantially complied with all terms and conditions of the existing agreement, and must be operating the franchised business in full compliance with City Wide's standards and requirements. Additionally, the franchisee must meet all monetary obligations and comply with City Wide's current criteria for operating a franchised business, including qualification and training requirements.