City Wide Franchise Company
Building MaintenanceThe City Wide Franchise Company franchise represents a distinctive and robust opportunity within the vital sector of managed commercial facility solutions, tracing its operational roots back to 1961 through its predecessors. City Wide Maintenance of America, Inc., established as a Missouri corporation on December 12, 2000, formally began offering franchises for sale in 2001, marking a significant expansion of its proven business model. Headquartered at 15350 West 109th Street, Lenexa, Kansas 66219, the company operates under the trade name “City Wide Facility Solutions,” distinguishing itself not as a direct provider of janitorial or maintenance services, but rather as a sophisticated management business. This unique positioning allows franchisees to offer clients a comprehensive suite of over 20 building maintenance services, including but not limited to janitorial, floor care, window washing, landscaping, and parking lot maintenance, without directly employing the service personnel. The core value proposition of a City Wide Franchise Company franchise lies in simplifying complex facility management for commercial clients, providing a single point of contact and accountability for a multitude of essential services. This model leverages a network of independent contractors, enabling franchisees to focus on sales, client relationship management, and strategic oversight, rather than the day-to-day execution of labor-intensive tasks. The brand’s long-standing history and specialized approach have cemented its market position as a leader in outsourced facility solutions, appealing to businesses seeking efficiency, quality, and streamlined operations across their commercial properties. This established reputation and operational framework underpin the value proposition for every City Wide Franchise Company franchise owner.
The industry landscape for facilities management and commercial building maintenance services is characterized by consistent demand and a critical need for efficiency, particularly as businesses increasingly seek to optimize operational costs and streamline vendor relationships. Commercial properties, ranging from corporate offices and healthcare facilities to educational institutions and retail establishments, require continuous upkeep and specialized services to maintain functionality, safety, and aesthetic appeal. The market is driven by economic activity, new commercial construction, and the ongoing operational needs of existing infrastructure. While the FDD does not explicitly detail the market size, the breadth of services offered by a City Wide Franchise Company franchise—encompassing everything from routine cleaning to specialized repairs and landscaping—underscores its relevance across virtually all commercial sectors. The trend towards outsourcing non-core business functions continues to fuel growth in managed service models, where companies prefer to delegate complex vendor management to specialists. This environment creates a fertile ground for the City Wide Franchise Company franchise, which capitalizes on this demand by providing a centralized, professional solution for managing diverse facility needs. The business model positions franchisees to capture a significant share of this recurring revenue market, acting as essential partners for commercial clients navigating the complexities of property upkeep. The inherent necessity of these services ensures a resilient business model, capable of adapting to various economic conditions by focusing on delivering consistent value and operational excellence.
Embarking on the journey to own a City Wide Franchise Company franchise involves a structured investment profile designed to establish a robust and operational business. The initial franchise fee for a single territory is $60,000, a foundational cost for gaining access to the brand’s proven system and trademarks. Prospective franchisees considering multi-unit development can benefit from a tiered fee structure, where the fee for a second territory is reduced to $30,000, and a third territory commands a fee of $15,000, encouraging strategic expansion. The total estimated initial investment for a single territory, as detailed in the March 29, 2024, Franchise Disclosure Document, ranges from $208,000 to $334,000. This comprehensive estimate includes various critical components: $2,000 to $4,000 for travel and living expenses during initial training, $0 to $10,000 for office leasehold improvements over the first three months, and $5,000 to $10,000 for essential office furniture, fixtures, and equipment. Further investment is allocated for office supplies ($500 to $1,000), computer hardware and software ($2,000 to $5,000), and an initial marketing and advertising spend of $10,000 to $15,000 for the first three months of operation. Professional fees for legal and accounting services are estimated at $5,000 to $10,000, with licenses and permits requiring $1,000 to $2,500. Insurance for the first three months is projected between $1,500 and $3,000. While optional, an initial inventory of cleaning supplies for sales to subcontractors may cost up to $5,000. Miscellaneous operating expenses for the initial three months range from $10,000 to $15,000. Critically, additional funds for the first three months of operation are estimated between $100,000 and $150,000, highlighting the significant working capital required to support early-stage growth and operational needs. This indicates a substantial liquid capital requirement for individuals seeking to operate a City Wide Franchise Company franchise. Regarding ongoing fees, franchisees are subject to a royalty rate of 6% of gross revenue for the initial 12 months, increasing to 8% of gross revenue thereafter. Minimum royalties are also phased, starting at $1,000 per month for months 7-12, escalating to $1,500 per month for months 13-18, $2,000 per month for months 19-24, $2,500 per month for months 25-30, $3,000 per month for months 31-36, and reaching $3,500 per month thereafter. A brand fund fee of 1% of gross revenue contributes to system-wide marketing and brand development initiatives. Furthermore, a technology fee is applied at $300 per month for the first six months, then $400 per month subsequently, covering access to proprietary software and IT infrastructure. The franchisor explicitly states that it does not offer direct or indirect financing, nor does it guarantee any notes, leases, or obligations for franchisees, underscoring the necessity for prospective owners of a City Wide Franchise Company franchise to secure their own funding.
The operating model and comprehensive support structure provided by the City Wide Franchise Company franchise are meticulously designed to empower franchisees, enabling them to effectively manage and grow their businesses. The initial training program is robust, requiring the designated Operating Principal and a key Manager to complete an intensive 10-day curriculum. This training commences with five days of classroom instruction at the franchisor’s headquarters, followed by two days of immersive on-site training at an established franchised location. Within the first 60 days of operation, an additional three days of on-site training are conducted at the franchisee’s own location, ensuring direct application of learned principles. This multifaceted training covers crucial aspects of the business, including sales strategies, operational protocols, administrative best practices, effective utilization of proprietary technology, and overarching management techniques. Beyond the initial training, the City Wide Franchise Company franchise provides continuous support through various channels. This includes pre-opening assistance, offering guidance on site selection for the franchisee’s office and support during lease negotiations. Ongoing operational support is a cornerstone, delivered through regular field visits from experienced representatives, who provide consultation and performance reviews. Marketing assistance is extensive, encompassing national marketing programs, guidance for localized advertising efforts, and a wealth of marketing collateral to aid in client acquisition. Technology support is integral, granting franchisees access to proprietary software, a robust Customer Relationship Management (CRM) system, professional email solutions, and a corporate website, all designed to enhance efficiency and client engagement. Furthermore, franchisees benefit from established purchasing programs, which leverage the collective buying power of the City Wide system to secure favorable terms for necessary supplies and services. This holistic support system ensures that franchisees are well-equipped with the knowledge, tools, and ongoing guidance required to successfully operate their City Wide Franchise Company franchise, focusing on managing a network of independent contractors to deliver diverse facility solutions to commercial clients.
The financial performance of City Wide Franchise Company franchise outlets provides a detailed insight into the potential revenue and gross profit generation within the system, as disclosed in Item 19 of the March 29, 2024, Franchise Disclosure Document. For the affiliate-owned outlet in Kansas City, Missouri, which serves as a long-standing benchmark, Gross Revenue demonstrated consistent growth from $31,525,487 in 2021 to $33,522,501 in 2022, and further to $35,270,729 in 2023. Correspondingly, its Gross Profit increased from $11,960,698 (37.94% of revenue) in 2021 to $12,793,025 (38.16%) in 2022, and $13,674,547 (38.77%) in 2023. It is crucial to understand that "Gross Profit" for the City Wide Franchise Company franchise is defined as Gross Revenue minus "Subcontractor Expense," and therefore does not account for other significant operating expenses such as rent, payroll, royalties, or advertising fund contributions. For franchised outlets, the data is segmented by operational longevity, providing a nuanced perspective. The most seasoned group, comprising 76 outlets operating for 36 months or more as of December 31, 2023, showcased impressive average performance. Their average Gross Revenue climbed from $3,925,841 in 2021 to $4,411,466 in 2022, reaching $4,982,505 in 2023. The average Gross Profit for this group followed suit, rising from $1,533,707 (39.07%) in 2021 to $1,733,392 (39.29%) in 2022, and $1,972,709 (39.60%) in 2023. The median Gross Revenue for these experienced outlets in 2023 was $4,124,302, with a median Gross Profit of $1,617,737. A second group, consisting of 10 outlets operating for 24-35 months as of December 31, 2023, reported an average Gross Revenue of $1,349,701 in 2022, which significantly more than doubled to $2,698,901 in 2023. Their average Gross Profit moved from $518,296 (38.40%) in 2022 to $1,059,252 (39.25%) in 2023. The median Gross Revenue for this group in 2023 stood at $2,128,157, with a median Gross Profit of $836,328. The third group, with 13 outlets operating for 12-23 months as of December 31, 2023, generated an average Gross Revenue of $844,980 in 2023, yielding an average Gross Profit of $330,819 (39.15%). Their 2023 median Gross Revenue was $759,007, and median Gross Profit was $297,557. Finally, 11 outlets operating for less than 12 months as of December 31, 2023, showed an average Gross Revenue of $241,749 and an average Gross Profit of $92,096 (38.09%) in 2023, with median figures of $191,959 and $72,502 respectively. This detailed financial disclosure provides prospective franchisees with a clear, albeit gross profit-level, understanding of the robust revenue-generating capabilities associated with a City Wide Franchise Company franchise across different stages of maturity.
The growth trajectory for the City Wide Franchise Company franchise system demonstrates a steady expansion and robust operational stability over recent years. As of December 31, 2021, the system comprised 104 franchised outlets and one affiliate-owned outlet, totaling 105 units. By December 31, 2022, the network had grown to 107 franchised outlets and the single affiliate-owned outlet, reaching a total of 108 units. This consistent expansion continued through December 31, 2023, when the system reported 110 franchised outlets and the enduring affiliate unit, bringing the total to 111 operational locations. Over these three years, the City Wide Franchise Company franchise system saw the opening of 7 new units in 2021, 5 in 2022, and 6 in 2023, indicating a continuous intake of new franchisees. While growth is positive, the system also experienced some churn, with 4 terminations in 2021, 2 in 2022, and 3 in 2023. Notably, there were no reported instances of outlets ceasing operations or being reacquired by the franchisor in 2021, 2022, or 2023, underscoring the underlying stability of the business model. The primary competitive advantage of a City Wide Franchise Company franchise lies in its unique management business model. Unlike traditional janitorial or maintenance companies that directly employ service staff, City Wide acts as the single point of contact for clients, managing a network of independent contractors. This allows franchisees to focus on sales, client relationships, and strategic oversight, avoiding the complexities of direct labor management. The brand’s comprehensive range of over 20 facility services, coupled with its established reputation dating back to 1961, provides a significant market differentiator. Proprietary technology and a robust support infrastructure further enhance the operational efficiency and competitive edge of each City Wide Franchise Company franchise. The company is actively and selectively growing its global collection, focusing on curating independent, one-of-a-kind properties in strategic destinations, although the FDD primarily focuses on domestic operations within the United States.
The ideal franchisee for a City Wide Franchise Company franchise is typically an individual with a strong business acumen, demonstrating leadership capabilities, and a proven track record in sales and management. Item 15 of the Franchise Disclosure Document explicitly states that the Operating Principal is required to devote their full time and best efforts to the business, indicating that this is not an absentee ownership opportunity but rather a hands-on, executive model. Successful franchisees are those who excel at building relationships, both with commercial clients and with the network of independent contractors who provide the actual services. They possess the capacity to manage multiple moving parts, oversee strategic growth, and drive sales initiatives within their designated territory. The financial requirements, particularly the need for substantial liquid capital to cover the $100,000 to $150,000 in additional funds for the initial three months of operation, suggest that candidates should have significant financial reserves and a clear understanding of managing a high-volume, service-based business. Each City Wide Franchise Company franchise is granted an exclusive territory, typically defined by a population ranging from 250,000 to 750,000. This exclusivity is a significant benefit, ensuring that the franchisor will not establish another franchised or company-owned outlet within the franchisee's protected geographic area. This territorial protection allows franchisees to focus their marketing and sales efforts without internal competition, fostering a sense of ownership and long-term investment in their local market. The franchisee is also restricted from operating a similar business within this territory during the franchise term and for two years following its termination, further safeguarding their market position. This combination of a clearly defined, exclusive territory and the requirement for dedicated, skilled management ensures that the City Wide Franchise Company franchise model attracts ambitious and capable entrepreneurs poised for success in the managed facility solutions market.
The City Wide Franchise Company franchise presents a compelling investor opportunity for individuals seeking to enter the resilient and essential commercial facility solutions market with an established brand and a distinctive business model. The comprehensive financial disclosures, particularly the consistent growth in average gross revenue and gross profit across various franchisee maturity groups, underscore the intrinsic value and scalability of this business. With average gross revenues reaching nearly $5 million for established outlets operating over 36 months by 2
Investment
$226,784 – $393,084
