What action must a franchisee take upon request after a City Wide inspection reveals deficiencies?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee will maintain the condition and appearance of the Office of the Franchised Business consistent with CITY WIDE standards, as set forth in the Operating Manual and otherwise in writing. Franchisee will maintain such premises as CITY WIDE may from time to time require to maintain or improve the appearance and efficient operation of the Franchised Business, including, but not limited to, replacement of worn out or obsolete fixtures and signs, and repair of the Location. If any time in CITY WIDE's judgment the general state of repair or the appearance of the premises of the Franchised Business or its equipment, fixtures, or signs does not meet CITY WIDE's standards, CITY WIDE will so notify Franchisee and specify the action Franchisee must take to correct such deficiency. If Franchisee fails or refuses to initiate within thirty (30) calendar days after receipt of such notice, and continues to fail to implement a bona fide program to complete any required maintenance, CITY WIDE will have the right, in addition to all other remedies, to enter upon the premises of the Franchised Business and effect such repairs, painting, maintenance or replacements of equipment, fixtures or signs on Franchisee's behalf and Franchisee will repay CITY WIDE the entire costs on demand. If Franchisee fails to make any such payments or remedy operational deficiencies, such failure will constitute a material breach of this Agreement and CITY WIDE may terminate this Agreement. Except for
those repairs that would constitute a public health or safety hazard, or are required by any governmental agency, any such remodeling requirement will be imposed only in a nondiscriminatory manner upon (i) all comparably situated CIT
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, if City Wide determines that the franchisee's premises, equipment, fixtures, or signs do not meet City Wide's standards, City Wide will notify the franchisee and specify the action needed to correct the deficiency. The franchisee is then required to initiate a program to complete the required maintenance within thirty calendar days of receiving the notice.
If the franchisee fails to start the maintenance program within the 30-day period, City Wide has the right to enter the premises and perform the necessary repairs, painting, maintenance, or replacements on behalf of the franchisee. The franchisee is then obligated to repay City Wide the entire cost of these actions upon demand.
Failure to make these payments or remedy operational deficiencies constitutes a material breach of the Franchise Agreement, which may lead to termination of the agreement by City Wide. However, remodeling requirements that are not related to public health or safety hazards, or required by a governmental agency, will be imposed in a non-discriminatory manner on all similarly situated City Wide franchisees and City Wide-owned businesses. Additionally, any capital expenditure exceeding $25,000 will only be required if there is sufficient time remaining in the franchise term to amortize or depreciate the expenditure under the Internal Revenue Code.