Does City Wide admit any liability or wrongdoing by including the release in the FDD?

According to City Wide's 2025 Franchise Disclosure Document, the inclusion of the release does not constitute an admission of liability or wrongdoing. Specifically, the document states that "Nothing herein shall constitute an admission of any liability or wrongdoing by any party hereto." This statement is part of a broader agreement where the franchisee releases City Wide from claims related to the franchise agreement.

This clause is included to protect City Wide from potential legal claims by franchisees related to the offer or sale of the franchise. However, the release does not apply in all situations. For example, the release specifies that it "does not waive any liability the franchisor may have under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder." This means that franchisees in Washington State retain certain legal rights and protections despite signing the release.

Prospective franchisees should carefully review the release and understand its implications before signing. It is advisable to seek legal counsel to fully understand the scope of the release and how it may affect their rights. While City Wide states that the release does not constitute an admission of liability, the inclusion of such a release is a common practice in franchising to mitigate potential legal risks.