Under what condition will City Wide not license or establish a business substantially similar to the franchised City Wide business within a franchisee's designated territory?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
er franchisees, from outlets that CITY WIDE or its affiliates own, or from other channels of distribution or competitive brands that CITY WIDE or its affiliates control.
CITY WIDE will not operate or license others to operate a CITY WIDE Franchised Business using the Marks within your Designated Territory unless you do not meet the annual revenue per capita ("Annual Revenue Per Capita Growth") in every year during the term of your Franchise Agreement.
Specifically, you will be required to grow the gross revenues generated by your CITY WIDE Franchised Business to no less than $0.20 per person per year in your Designated Territory. The rate of $0.20 is the current rate. On an annual basis beginning of fiscal year any metric that we use to measure the Annual Revenue Per Capita Growth may be adjusted based upon the increase in the Consumer Price Index as currently measured by the Index as defined below, but not to exceed 3%. For purposes of this section, "Index" shall mean (i) the increase in the Consumer Price Index for all Urban Consumers, U.S. City Average (1982-84 = 100) published by
Source: Item 12 — TERRITORY (FDD pages 36–39)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide will generally not operate or license others to operate a City Wide franchise using its marks within a franchisee's designated territory. However, this is conditional. If a franchisee fails to meet the annual revenue per capita growth requirement in every year during the term of the Franchise Agreement, City Wide reserves the right to operate or license others to operate a City Wide franchise within that franchisee's territory.
The specific annual revenue per capita growth requirement is growing the gross revenues generated by the City Wide franchise to no less than $0.20 per person per year in the designated territory. This rate of $0.20 is the current rate and may be adjusted annually based on the increase in the Consumer Price Index, but the adjustment will not exceed 3%. City Wide will notify franchisees of any rate increases, and the updated rate will appear in the Manual.
This condition is significant for prospective franchisees as it highlights the importance of meeting performance benchmarks. Failure to achieve the required annual revenue per capita growth can lead to City Wide establishing competing franchises within the franchisee's designated territory, which would directly impact the franchisee's business and revenue potential. Franchisees should carefully consider their ability to meet these growth targets before investing in a City Wide franchise.