What is the transfer fee for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| reasonable attorneys' | |||
| fees, incurred by CITY | |||
| WIDE subsequent to termination or expiration in | |||
| connection with obtaining injunctive or other relief | |||
| under the Franchise Agreement; provide all signage | |||
| to CITY WIDE; and take further action as may be | |||
| required by the Operating | |||
| Manual or reasonably | |||
| requested by CITY WIDE; and, if due to your | |||
| default, forfeit any royalty rebate. | |||
| j. | Assignment of contract by | Section 13 | No restriction on CITY WIDE's |
| Franchisor | right to assign. | ||
| k. | "Transfer" by you – definition | Section 13 | Includes transfer of contract or assets or change in ownership. |
| l. | Franchisor's approval of transfer by you | Section 13 | CITY WIDE has the right to approve all transfers, but will not unreasonably withhold approval. |
| m. | Conditions for Franchisor's approval of transfer | Section 13 | You must ask CITYWIDE at least 60 days before to approve a transfer; you must pay a Transfer Fee equal to $25,000 and pay any applicable third-party broker fee; you must be in compliance with the Franchise Agreement and |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–47)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee who wishes to transfer their franchise must pay a transfer fee of $25,000 to City Wide. This fee is one of several conditions that must be met for City Wide to approve the transfer.
In addition to the transfer fee, the franchisee must request approval from City Wide at least 60 days before the proposed transfer date. The franchisee must also be in compliance with the Franchise Agreement and Operating Manual. Furthermore, the person or entity to whom the franchise is being transferred (the transferee) must meet City Wide’s standards, agree to make any required upgrades to the business, and sign the current form of the franchise agreement. The transferee must also pay all required fees, including initial franchise fees.
These conditions are typical in franchising, as franchisors want to ensure that any new franchisee is well-qualified and capable of maintaining the brand's standards. The $25,000 transfer fee likely covers City Wide's administrative costs associated with reviewing and approving the transfer, as well as training the new franchisee. Prospective franchisees should consider this fee and the other conditions when evaluating the potential costs and requirements of transferring a City Wide franchise.