How must the Successor Fee be paid to City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 $
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Successor Fee must be paid via certified or cashier's check, or by other payment methods designated by City Wide. This payment is due contemporaneously with the franchisee's execution of the Successor Franchise Agreement. The Successor Fee is equal to fifty percent (50%) of City Wide's current Initial Franchise Fee.
This means that if a franchisee chooses to renew their franchise agreement with City Wide, they will need to be prepared to pay the Successor Fee at the time of signing the new agreement. The specific amount will depend on what City Wide's current Initial Franchise Fee is at that time.
The FDD specifies that the Successor Fee is deemed fully earned upon payment and is non-refundable, so franchisees should carefully consider their decision to renew, as this fee will not be returned under any circumstances. Franchisees should also be aware of any other payment methods that City Wide may designate, ensuring they can comply with the franchisor's preferred payment options.