Under what conditions can the Accounting Services Fee for City Wide franchisees change?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee's monthly Gross Sales, or as outlined in the Operating Manual. Franchisee must make all such payments to
the CITY WIDE Marketing Fund ("Fund"). CITY WIDE or its designee may expend amounts in the Fund by the terms of Section 10 of this Agreement.
- (b) Local Advertising. Franchisee must spend at least $1,200 annually on Franchisee's own advertising and promotion as outlined in the Operating Manual.
- 3.7.3 Accounting Services Fee. Franchisee is required to use Franchisor's financial reporting, bookkeeping and other accounting services for the first twelve (12)
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Accounting Services Fee is currently $1,500 per month, but this amount may vary depending on the level of services a franchisee elects to receive. The rate is also subject to change based on the terms outlined in the Accounting Services Agreement, which is included as Attachment L to the Franchise Agreement.
This means that while there is a standard monthly fee, franchisees have the option to select different levels of accounting services, which would impact the total cost. It is important for prospective franchisees to carefully review Attachment L, the Accounting Services Agreement, to understand the specific conditions under which the fee may change. This agreement will detail what services are included at each level and how any additional services or changes to the scope of work could affect the monthly fee.
Prospective City Wide franchisees should pay close attention to the terms of the Accounting Services Agreement to fully understand the potential for changes in the Accounting Services Fee. Understanding these terms will allow franchisees to budget accurately and avoid unexpected costs. It is advisable to discuss these potential changes with City Wide during the due diligence process to gain clarity on how the fee structure works and what factors could lead to adjustments.