Is there a limit to how much City Wide can charge for the inspection and evaluation of a proposed supplier?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
re required to use for the first twelve months after you have completed the initial training program.
If you propose to use at your Location any equipment or any brand of product which is not currently approved by CITY WIDE, or to purchase any product from a supplier that is not then designated by CITY WIDE as an Approved Supplier on CITY WIDE's Approved Suppliers List, you must first notify CITY WIDE and must, upon request by CITY WIDE, submit samples or other information as CITY WIDE requires for examination and testing or to otherwise determine whether the proposed supply or supplier meets CITY WIDE's specifications and quality standards. CITY WIDE will not consider franchise owners or their affiliates requesting to become Approved Suppliers. A charge not to exceed the reasonable cost of CITY WIDE's inspection and evaluation, which CITY WIDE generally anticipates to range not to exceed $250, plus the actual cost of any test will be paid to CITY WIDE by you or the supplier. CITY WIDE will notify you within 45 business days whether it approves or disapproves of the proposed supply or supplier. If CITY WIDE approves the proposed supply or supplier, you will be permitted to purchase that supply or use that supplier in connection with your Franchised Business unless such approval is revoked. CITY WIDE reserves the right at its option, to re-inspect the facilities and products of any supplier of an approved it
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–28)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, if a franchisee proposes to use equipment, a brand of product, or a supplier not already approved by City Wide, the franchisee must notify City Wide and submit samples or information for evaluation. City Wide will not consider franchise owners or their affiliates to become approved suppliers.
City Wide can charge the franchisee or the supplier for the inspection and evaluation of the proposed supplier or product. This charge is capped at the reasonable cost of the inspection and evaluation, generally anticipated to not exceed $250, plus the actual cost of any tests. City Wide will then notify the franchisee within 45 business days whether the proposed supplier or product is approved.
If City Wide approves the proposed supplier or product, the franchisee can use them unless the approval is revoked. City Wide retains the right to re-inspect approved suppliers and their products and can revoke approval if they no longer meet City Wide's criteria. This ensures that all suppliers meet City Wide's quality and integrity standards.
This process allows City Wide to maintain quality control over its brand and offerings while allowing franchisees to suggest new suppliers or products. The capped inspection fee provides some cost certainty for franchisees exploring new options, but they should still factor in potential testing costs and the time required for approval when making decisions.