What actions must a City Wide franchisee take regarding the Operating Manual, Software, and Confidential Information upon termination of the franchise agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2.3 Cease to use and destroy all tangible copies of the Operating Manual, the Software, and all other Confidential Information together with all equipment and other property owned by CITY WIDE.
Franchisee will retain no copy or record of any of the foregoing; provided, however, that Franchisee may retain Franchisee's copy of this Agreement, a copy of any correspondence between the parties, and a copy of any other document which Franchisee needs for compliance with any applicable provision of law.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, a franchisee must take specific actions regarding the Operating Manual, Software, and Confidential Information. The franchisee must immediately cease using and destroy all tangible copies of the Operating Manual, the Software, and all other Confidential Information. This includes ensuring that no copies or records of these materials are retained, with limited exceptions.
Specifically, the franchisee is allowed to keep their copy of the Franchise Agreement, any correspondence between the parties, and any other documents needed for compliance with applicable laws. This distinction ensures that the franchisee retains necessary legal and business records while preventing the misuse of City Wide's proprietary information.
This requirement is standard in franchising to protect the franchisor's intellectual property and maintain the uniformity of the franchise system. Failure to comply with these post-termination obligations could result in legal action by City Wide to protect its confidential information and proprietary assets.