What action does City Wide prohibit the franchisee from taking regarding recurring billing, provided the transactions correspond to the terms indicated in the authorization form?

According to the 2025 City Wide Franchise Disclosure Document, a franchisee agrees not to dispute recurring billing charges with their bank if the transactions match the terms specified in the authorization form. This agreement is part of the ACH Recurring Payment Authorization Form.

This means that once a franchisee authorizes recurring payments and the transactions are processed according to the agreed-upon terms, the franchisee cannot later dispute these charges with their bank. This is a standard clause to ensure timely and consistent payments to City Wide for royalties, marketing fees, and other amounts due.

If a franchisee were to dispute a valid charge, it would likely be considered a breach of the franchise agreement, potentially leading to penalties or even termination of the agreement. Therefore, it is crucial for franchisees to carefully review and understand the terms of the authorization form before agreeing to recurring payments to avoid any future disputes.