When acknowledging ownership interest for a City Wide franchise, what does City Wide rely on regarding the accuracy of the provided information?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
CITY WIDE has developed the System through the expenditure of time, money, and effort and has maintained high standards of quality and service for the System, because of which the System has acquired valuable goodwill and a favorable reputation; and
CITY WIDE has and continues to develop, use, protect, and control the Marks for the benefit and exclusive use of itself and its franchisees to identify for the public the source of the products and/or services marketed under the System and to represent the System's high standards of quality; and
Franchisee desires to operate and has applied for a franchise to operate a business or facility according to the CITY WIDE System and using the Marks, and CITY WIDE has approved Franchisee's application in reliance upon all of representations made in Franchisee's application; and
Franchisee desires, upon the terms and conditions contained in this Agreement, to enjoy the benefits of operating under the System and of using the Marks and to be licensed to conduct the Franchised Business in strict accordance with the standards and specifications of the System; and
Franchisee acknowledges that it is essential to the maintenance of the high standards of the System, and to the preservation of the integrity of the System, Marks, and goodwill of CITY WIDE, that each franchisee in the System maintain and adhere to certain uniform standards, procedures and policies described in this Agreement, and operate the Franchised Business in strict conformity with the CITY WIDE standards and specifications; and
CITY WIDE is willing to grant Franchisee a license under the System and the Marks to operate a Franchised Business, subject to Franchisee's strict compliance with the terms and conditions of this Agreement; and
CITY WIDE expressly disclaims the making of, and Franchisee acknowledges that Franchisee has not received nor relied upon, any warranty or guaranty, express or implied, as to: (a) the validity, exclusive ownership or enforceability of any Mark; (b) the validity or enforceability of any copyright, patent, or trade secret.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, City Wide approves a franchisee's application to operate a business under the City Wide system and using its marks based on the representations made by the franchisee in their application. City Wide relies on the accuracy of these representations when granting the franchise.
City Wide has invested resources to develop the System and maintain quality standards, leading to valuable goodwill and a favorable reputation. They protect and control their marks for the benefit of themselves and their franchisees. Franchisees benefit from operating under the City Wide system and using the marks, but they must strictly adhere to the standards and specifications of the system.
City Wide emphasizes that franchisees must maintain uniform standards, procedures, and policies to preserve the integrity of the System, Marks, and goodwill. The franchisor is willing to grant a license to operate under the System and Marks, but only if the franchisee strictly complies with the terms and conditions of the franchise agreement. City Wide makes no warranties or guarantees regarding the validity, ownership, or enforceability of any Mark, copyright, patent, or trade secret.