Can City Wide advertise and sell services associated with a City Wide franchise through dissimilar channels of distribution, such as the internet, within and outside the franchisee's designated territory?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
6.7.4 Advertise and sell the services, products, materials and related equipment authorized as associated with Franchisee's Franchised Business under the Marks through dissimilar channels of distribution including, without limitation, by electronic means such as the Internet, websites and 3D virtual worlds we establish and pursuant to terms we deem appropriate within and outside Franchisee's Designated Territory;
6.7.5 Advertise the System on the Internet and create, operate, maintain, modify, or discontinue the use of one or more websites using the Marks;
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide retains the right to advertise and sell services, products, materials, and related equipment associated with a franchisee's business through various channels, including electronic means like the Internet and websites. This can occur both within and outside the franchisee's designated territory, and City Wide determines the terms it deems appropriate. This means that City Wide can market and sell services online, potentially competing with its own franchisees, even within their exclusive territory.
This clause gives City Wide significant control over online marketing and sales, which could impact a franchisee's ability to generate revenue within their territory. While franchisees are granted an exclusive territory, City Wide's ability to operate online and through other channels dilutes the exclusivity. A prospective franchisee should consider how City Wide's online marketing strategy might affect their business and whether it could lead to competition for customers within their designated area.
Furthermore, City Wide can advertise the entire system on the Internet and manage websites using the brand's trademarks. This allows City Wide to maintain a strong online presence and control the overall marketing message. However, franchisees must obtain City Wide's prior written consent before establishing their own Internet presence or marketing their franchise online, ensuring that all online activities align with City Wide's standards and guidelines. This requirement ensures brand consistency but also limits the franchisee's autonomy in online marketing.
In summary, while City Wide grants franchisees an exclusive territory, it retains considerable rights to market and sell services through various channels, including the Internet, both within and outside the franchisee's territory. This has implications for potential competition and the franchisee's control over their online marketing efforts. Prospective franchisees should carefully evaluate these terms and understand how City Wide's marketing strategies may impact their business.