Can City Wide acquire businesses providing similar services to a City Wide franchise and franchise them under a different trademark, even if they are located within the franchisee's designated territory?

According to City Wide's 2025 Franchise Disclosure Document, City Wide retains the right to acquire businesses that offer similar services to those provided by its franchisees. City Wide can then franchise these acquired businesses under a different service mark or trademark, even if these businesses operate within a franchisee's designated territory. This clause gives City Wide considerable latitude to expand its market presence through acquisitions without being restricted by existing franchise territories.

This provision has significant implications for prospective City Wide franchisees. While franchisees are granted an exclusive territory, this exclusivity does not prevent City Wide from introducing competing businesses within that territory under a different brand. This could potentially dilute a franchisee's market share and revenue. Franchisees should be aware that their exclusive territory is subject to this exception, which could impact their business's performance.

It is important for potential franchisees to fully understand the scope of this clause and how it might affect their investment. They should consider asking City Wide for more details on their acquisition strategy and how they plan to manage potential conflicts between franchisees and acquired businesses operating in the same area. Understanding City Wide's long-term vision and commitment to supporting its franchisees in the face of such competition is crucial for making an informed decision.