Risk Score
Pending analysis
Investment Range
$226,784 - $393,084
Franchise Fee
$63,000
Min Cash Required
$75,000
Total US Locations
103
Business Summary
City Wide is a franchise system that offers a comprehensive range of commercial facility maintenance services to various commercial customers. These services include 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. City Wide franchisees operate within a designated territory, analyzing client needs and matching independent contractors with those clients to fulfill service requirements.
Corporate History
City Wide Franchise Company, Inc. was incorporated in Kansas on May 22, 2001, and began offering franchises for commercial facility maintenance services on July 1, 2001. City Wide has not offered franchises in any other line of business. While City Wide itself does not operate company-owned businesses, its principals have ownership interests in companies that operate six City Wide franchises across various states. City Wide's parent company, City Wide Franchise Holding Company, Inc., was incorporated in 2021 and owns the trademarks and intellectual property licensed to City Wide and its franchisees.
Financial Overview
Investment Range
$226,784 - $393,084
Franchise Fee (Low)
$63,000
Franchise Fee (High)
$70,000
Minimum Cash Required
$75,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$12,000
Equipment Costs (High)
$31,500
Working Capital
$112,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
City Wide's financial statements show strong performance, with net income growing from $10.9 million in 2022 to $19.1 million in 2024. The company's cash and cash equivalents have also increased significantly, reaching over $24.2 million by the end of 2024. In 2024, City Wide reported a non-cash loss of approximately $1.45 million due to the abandonment of a software subscription. Additionally, in 2023, the company received a refundable advance of about $2 million related to the Employee Retention Credit, of which approximately $1.25 million was returned in 2024, with $371,000 recognized as other income. Despite these specific events, the independent auditor has issued an unqualified opinion, indicating that City Wide's consolidated financial statements fairly represent its financial position.
Financing Details
City Wide does not offer any direct or indirect financing to its franchisees. Additionally, City Wide does not guarantee any notes, leases, or other obligations of its franchisees.
Performance Metrics
Total US Locations
103
Franchised Units
98
Corporate Units
5
Avg Square Footage
1,500
Franchising Since
2001
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
City Wide was involved in one litigation case, Dauntless Enterprises, Inc. and Kenneth Ayers v. City Wide Franchise Company, Inc., which was filed on June 16, 2023, in the United States District Court for the District of Kansas. The plaintiffs, a City Wide franchisee and its owner, sought a preliminary injunction and alleged breach of contract concerning the expiration of their franchise agreement. City Wide disputed that the franchisee had met all renewal conditions. The parties settled all claims on July 7, 2023, agreeing to extend the initial term of the franchise agreement through December 31, 2026, with an option for a successor term if certain financial and operational milestones, including maintaining at least four sales executives, were met. Both the arbitration and federal court case were subsequently dismissed with prejudice on August 1, 2023.
Bankruptcy History
City Wide has no bankruptcy history to report for itself or its predecessors, affiliates, or management personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, City Wide franchisees must meet several conditions. They must provide written notice of their desire to renew at least 12 months before the current term expires. The franchisee must be in good standing, meaning they have not defaulted on the agreement and have substantially complied with all terms, including the Annual Revenue Per Capita Growth requirement and Operating Manual standards. They must perform all required maintenance, refurbishing, renovating, remodeling, and equipment upgrades at their own expense. Franchisees will also be required to sign City Wide's then-current form of franchise agreement, which may differ significantly from their original agreement, and pay a successor fee equal to 50% of the then-current Initial Franchise Fee. Lastly, they must sign a general release of all claims against City Wide and provide proof of their right to remain at their current location.
Training & Support Program
Franchisor Assistance
City Wide provides comprehensive assistance to its franchisees. Before opening, City Wide offers a mandatory initial training program, provides access to a confidential Operating Manual, and supplies required hardware, software, peripherals, and related licenses. During operations, City Wide offers ongoing assistance and supervision, provides specifications for equipment, and delivers continuous advisory support on operating problems, new techniques, and administrative methods. City Wide also reviews all promotional and advertising materials before use and offers guidance on business procedures and software updates. Additionally, City Wide requires franchisees to utilize its Accounting Services and Business Development Center for the first 12 months of operations, and its IT Services for the first 36 months.
Initial Training Hours
88
Training Location
Kansas City Metropolitan Area or virtual
Ongoing Support
City Wide provides ongoing assistance and supervision, offering continuous advisory support for the operation of the franchise business. This includes advice on operating problems, new techniques, and administrative, bookkeeping, accounting, and operating methods based on reports and inspections. Franchisees receive guidance on improved operational methods, use of the Operating Manual, management materials, promotional materials, advertising forms, and Marks. City Wide also reviews all promotional and advertising materials prior to use. Franchisees are required to attend annual conventions (National Meetings) and may be required to attend additional refresher training programs up to four times a year in Lenexa, Kansas. Additionally, City Wide mandates the use of its Accounting Services for the first 12 months, its Business Development Center for prospecting and client development for the first 12 months, and its IT Services for desktop monitoring, troubleshooting, and software updates for the first 36 months.
Franchise Requirements
Ideal Candidate Profile
City Wide seeks individuals who are committed to personally overseeing the day-to-day operations of their franchise business and residing full-time, year-round within their designated territory. If a manager is appointed to handle daily operations, they must also be a trained, competent employee with the necessary experience to operate the business according to the Operating Manual, reside full-time in the territory, hold at least a 20% ownership interest in the franchise, and meet City Wide's current qualifications for new franchisees. City Wide evaluates candidates based on their personal abilities, aptitudes, and financial qualifications.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
City Wide territories are not based on a prescribed minimum area but are instead determined by a combination of factors. These include population (categorized into tiers such as less than 1 million, 1 million to 1.5 million, 1.5 million to 2 million, and 2 million or more, which also influences the Initial Territory Fee), population density, whether the area is primarily residential or business-focused, and the number and density of office buildings. Franchisees are also required to meet an Annual Revenue Per Capita Growth target of no less than $0.20 per person per year in their designated territory, measured using a two-year rolling average.
Staffing Notes
City Wide requires franchisees to comply with minimum staffing levels as detailed in the Operating Manual. The franchise emphasizes the direct correlation between sales staffing and financial success, stating that franchisees must meet these minimum levels. Franchisees are expected to employ trained individuals, and if new or additional managers, outside salespersons, or quality-control personnel are designated, City Wide will provide training. If a manager is appointed to handle daily operations, they must be a full-time, competent employee with the necessary experience, reside full-time in the designated territory, and hold at least a 20% ownership interest in the franchise, also meeting City Wide's current qualifications for new franchisees.