What is the total amount of the Initial Franchise Fee that a City Wide franchisee must pay?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ires a longer notice period). In the latter case, all of Franchisee's obligations shall remain in full force and effect during the Interim Period as if this Agreement had not expired, and all obligations and restrictions imposed on Franchisee upon expiration of this Agreement shall be deemed to take effect upon termination of the Interim Period.
SECTION 3. Franchise Fees and Ongoing Payment Obligations of Franchisee
3.1 Initial Fees. Contemporaneously with Franchisee's execution of this Agreement, Franchisee must pay CITY WIDE an initial franchise fee ("Initial Franchise Fee") of Seventy Thousand Dollars ($70,000); plus, an initial training fee ("Initial Training Fee") of Seven Thousand Five Hundred Dollars ($7,500) plus an initial territory fee ("Initial Territory Fee") in the amount set forth on Attachment B plus a Technology Provisioning Fee ("**Techn
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees must pay several initial fees. These include a $70,000 initial franchise fee, a $7,500 initial training fee, an initial territory fee (amount determined by City Wide), and a $12,500 technology provisioning fee. These fees are collectively referred to as the "Initial Fees."
The initial territory fee is not a fixed amount. The FDD states that the determination of a Designated Territory's size and the Initial Territory Fee to be paid for such Designated Territory shall be at the sole and absolute right of City Wide. This means that the total initial investment can vary significantly depending on the territory assigned.
Prospective franchisees should note that these initial fees are generally nonrefundable, although there are limited exceptions. For example, if City Wide terminates the agreement within fifteen days after evaluating the franchisee's qualifications, the franchisee may receive a refund of the Initial Fees, less an evaluation fee that will not exceed $2,500. Similarly, if the franchisee cannot provide adequate proof of financing within thirty days of the agreement's execution, either party may terminate the agreement, and City Wide will refund the Initial Fees, less $2,500 for expenses incurred. If a franchisee or their designees do not successfully complete the required initial training program or fail to secure an acceptable site for the Franchised Business's office, City Wide may terminate the Agreement and refund the Initial Fees, less training and other expenses incurred by City Wide, which shall not exceed $10,000.
In summary, while the initial franchise, training, and technology fees total $90,000, the initial territory fee is variable and determined at City Wide's discretion. A prospective franchisee should clarify the territory fee with City Wide to understand the total initial investment required.