What is the Transfer Fee required by City Wide if a franchisee wants to transfer their 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 Operating Manual; transferee must meet CITY WIDE's standards, agree to make required upgrades, sign the current form of franchise agreement, and pay all required fees (including Initial Fees). |
| n. | Franchisor's right of first refusal to acquire your business | Section 20 | If you propose to sell the Franchised Business, its assets or part of the ownership |
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. This fee is one of several conditions that must be met for City Wide to approve the transfer. The franchisee must request approval at least 60 days before the proposed transfer date.
In addition to the transfer fee, the franchisee is responsible for paying any applicable third-party broker fees associated with the transfer. The franchisee must also be in compliance with the Franchise Agreement and Operating Manual. This means that the franchisee must be up-to-date on all payments and adhering to all operational standards set by City Wide.
The prospective transferee must also meet City Wide's standards for new franchisees. This includes agreeing to make any required upgrades to the business and signing the current form of the franchise agreement. The transferee must also pay all required fees, including the initial franchise fee, which could be a substantial investment. These conditions ensure that any new franchisee is well-qualified and committed to upholding the City Wide brand standards.
City Wide also retains the right of first refusal to purchase the franchise business. This means that if a franchisee proposes to sell their business, City Wide has the option to purchase it themselves under the same terms and conditions offered to the third party. This right allows City Wide to maintain control over its franchise network and ensure that the business remains in capable hands.