Does the City Wide accounting services agreement automatically renew?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
All the above Terms will continue for a period of twelve (12) months, unless otherwise agreed to in writing among the Parties, or terminated sooner in accordance with Section 3 of this Agreement ("Initial Term"). This Agreement will renew automatically for a period of six (6) months (collectively, each six month term, "Successor Term"), unless terminated in accordance with Section 3 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, the accounting services agreement has an initial term of twelve months and will automatically renew. The agreement renews for a period of six months, referred to as the Successor Term, unless terminated according to the terms in Section 3 of the agreement.
Either party can terminate the agreement after the initial twelve-month term by providing ninety days written notice to the other party. The termination becomes effective on the 90th day from the date the written notice was delivered.
This automatic renewal clause means a City Wide franchisee must actively manage the accounting services agreement to avoid unwanted extensions. Franchisees should mark their calendars to provide timely notice of termination if they do not wish to continue with the service. Reviewing Section 3 of the agreement, as referenced in the disclosure, is crucial to understanding the specific conditions and procedures for termination.