Franchising Since: 2001
Headquarters: Lenexa, Kansas
Estimated Number of Units: 110
Franchise Description: City Wide Franchise Company, Inc. is the franchisor. City Wide is a franchise system offering commercial janitorial services, commercial janitorial supplies, carpet cleaning, window washing, construction clean-up, blind cleaning, hard surface floor care, pest control, upholstery cleaning, concrete coatings, and other commercial services to a variety of commercial customers, all of which are conducted in the territory in which the franchisee is designated to operate.
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Territory Granted: During the term of the Franchise Agreement, as long as franchisees are not in material breach of the Franchise Agreement, the franchisor will grant them the right to operate one franchised business in a designated territory. There is no prescribed minimum area granted to franchisees, as each designated territory is based upon various factors including population, density of population, whether the territory is categorized as residential or business, and other factors, including the number and density of office buildings in the proposed designated territory. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor or its affiliates own, or from other channels of distribution or competitive brands that the franchisor or its affiliates control.
Obligations and Restrictions: Franchisees are required to personally oversee the day-to-day operations of the franchised business and must reside full-time, year-round, within the designated territory. If the franchisee wishes to appoint a full-time manager to handle daily operations at a specific location, they must first obtain approval from the franchisor. Franchisees must comply with the franchisor’s staffing requirements which are detailed in the operating manual. Franchisees may sell only within their designated territory, except as provided by the franchisor for solicitation of sales outside of their designated territory.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two additional terms of five years each are available if requirements are met.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. The franchisor offers a 10% discount off the initial franchise fee for each franchised business that is granted to franchisees if they are majority-owned by a veteran.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $70,000 | $70,000 |
| Initial Training Fee | $7,500 | $7,500 |
| Initial Territory Fee | $15,000 | $50,000 |
| Technology Provisioning Fee | $12,500 | $12,500 |
| Travel and Living Expenses While Training | $4,000 | $10,000 |
| Real Estate / Rent Deposit | $6,000 | $12,000 |
| Leasehold Improvements | $0 | $5,000 |
| Signage | $700 | $2,500 |
| Utility and Security Deposits | $0 | $3,000 |
| Furniture, Fixtures, and Equipment | $5,000 | $16,000 |
| Computer Hardware, Software, Peripherals and Licensing Fees | $7,000 | $10,500 |
| IT Support Services | $120 per user per month for the first thirty-six months of operations for ongoing IT desktop services and support. | |
| Accounting Services | $1,500 | $1,500 |
| Business Development Services | $3,500 | $3,500 |
| Technology Development Fee and IT Project Development Fees | $1,864 | $1,864 |
| IT Project Development Fees | $300 | $300 |
| Office Supplies and Stationery | $1,400 | $2,100 |
| Recruitment Advertising and Services | $4,500 | $13,500 |
| Insurance | $1,900 | $5,700 |
| Payroll Technology | $1,000 | $3,500 |
| Professional Fees and License Fees | $8,000 | $12,000 |
| Additional Funds | $75,000 | $150,000 |
| ESTIMATED TOTAL | $226,784 | $393,084 |
Other Fees
| Type of Fee | Amount |
| Royalty Fee | The greater of 5% of total gross sales or the minimum royalty fee, including gross sales involving national accounts. |
| National Marketing Fund | Up to 1% of total gross sales (in some circumstances this fee may be capped). |
| Local Advertising | $1,200 per year. |
| Late Fee | The greater of $30 or 10% APR of balance due, or highest interest rate allowed by law. |
| Accounting Services Fee | $1,500 per month for the first twelve months of operations. |
| IT Services Fee | $120 per user per month for the first thirty-six months of operations for ongoing IT desktop services and support. Additional laptop hardware will be procured, configured and charged at then market rates. |
| Non-Sufficient Funds Fee | $30 plus interest at the highest rate permitted by applicable state law for each day amount is then past due |
| Business Development Center | $3,500 per month (per one 20 hour call block per week) plus bonus and commissions, for the first twelve months of operations. |
| Transfer Fee | $25,000 |
| Audit | Amount of underpayment, plus interest at highest legal rate, not to exceed 10%. If underpayment is 2% or more, franchisees must reimburse the franchisor for its audit costs. Audit costs may run as much as $6,000. |
| Successor Fee | 50% of the then current initial franchise fee. |
| Additional Franchisee In-Person Training or On-site Assistance or Supervision | $330 - $750 per person per day plus actual expenses. |
| Additional Franchisee Online Training | Up to $600 per month. |
| Franchisor’s Operation of Franchised Business | $500 per day plus actual expenses. |
| Legal Fees and Indemnification | Actual costs of suit, attorneys and accountants’ fees incurred by the franchisor. |
| Prospective Supplier Sample Tests | Actual costs of testing, which may exceed $1,000. |
| National Meetings | $650 national attendance fee, plus the actual costs of travel, food and hotels. If franchisees fail to attend or send an authorized representative (approved by the franchisor in advance) without the franchisor’s consent, they will be charged a non-attendance fee of $2,000. |
| Franchise Advisory Council (FAC) Expenses | All actual costs incurred by the FAC, which may range from $300 to $500 per year/franchisee. |
| National Technology Development Expense | Expenses and materials involving design, development, testing, and deployment of technology capabilities, which currently are approximately $1,864 per month. Recurring monthly. |
| Predictive Index – Certification | $750, plus an annual fee of $350 per use. |
| City Wide YOU | $1,000 |
| City View IT Project | $300 |
| Ancillary Optional License/Subscription Fees Per User | $4,500 - $5,500 |
| Recruiter Placement | $4,500 - $7,000 |
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