Is the City Wide Transfer Fee in addition to any Initial Franchise Fee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
lty Rebate, based upon the criteria set forth in the Royalty Rebate Program, Franchisee and the transferee shall split the Royalty Rebate on a pro rata basis based upon the number of months each owned the Franchise Business. For purposes of calculating the Gross Sales, the aggregate of the Gross Sales of Franchisee before the Transfer will be
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Transfer Fee is in addition to any Initial Franchise Fee. If a franchisee transfers their City Wide franchise to a new owner and City Wide approves the transfer, the franchisee must pay a Transfer Fee of $25,000, plus any applicable third-party broker fees.
This Transfer Fee is separate from and in addition to any Initial Franchise Fee that may be due under the then-current franchise agreement. This means that a prospective buyer may need to pay both the Transfer Fee to the existing franchisee and a separate Initial Franchise Fee to City Wide when the franchise is transferred.
However, these transfer terms do not apply if the transfer is among current owners, their spouses or domestic partners, or children, and does not result in a loss of control of the franchise. In such cases, the Transfer Fee may be waived. It is important for prospective franchisees to understand all the costs associated with acquiring a franchise, including the Transfer Fee and any Initial Franchise Fees, to accurately assess the financial implications of the transfer.