Does the City Wide agreement create an employer/employee relationship between the franchisee and City Wide?

According to City Wide's 2025 Franchise Disclosure Document, the franchise agreement explicitly states that it does not create an employer/employee relationship between City Wide and the franchisee. The agreement specifies that the franchisee operates as an independent contractor. This means the franchisee is not considered an agent, legal representative, joint venturer, partner, employee, or servant of City Wide for any purpose.

As an independent contractor, the City Wide franchisee has complete control and direction over their business operations and employees, subject to the conditions and obligations outlined in the Franchise Agreement. The franchisee is responsible for managing their business and employees, and City Wide's role is primarily to provide the system, software, and brand under which the franchisee operates. The franchisee is not authorized to make any contract, agreement, warranty, or representation on behalf of City Wide, nor can they incur any debt or create any obligation, express or implied, on behalf of City Wide.

This independent contractor relationship is further reinforced in agreements for additional services, such as IT services and business development, where it is reiterated that these agreements do not create an employer-employee relationship. This distinction is important because it clarifies that the franchisee is responsible for their own business decisions, liabilities, and compliance with employment laws, while City Wide maintains a separate, arms-length business relationship.