Under what conditions can a City Wide franchisee earn royalty rebates, and how are these rebates recognized?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company also offers annual royalty rebate programs where franchisees may earn rebates based on franchisee gross sales during a calendar year. When rebate thresholds are achieved, the rebate is recognized as contrarevenue. Rebate programs are measured on an annual basis, in line with the Company's fiscal year.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees have the opportunity to participate in an annual royalty rebate program. These rebates are contingent upon the franchisee achieving certain gross sales thresholds during a calendar year. The specific thresholds required to earn a rebate are not detailed in this document.
When a City Wide franchisee successfully meets the rebate thresholds, the rebate is recognized as contra-revenue. This means the rebate is accounted for as a reduction in the revenue recognized by City Wide. The rebate programs are evaluated annually, aligning with City Wide's fiscal year.
Prospective franchisees should inquire with City Wide about the specific gross sales thresholds required to qualify for royalty rebates and the potential value of these rebates. Understanding these details is crucial for assessing the potential profitability of a City Wide franchise.