factual

Which agreements must the Manager sign for a City Wide franchise?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

The Manager must sign the Guaranty and Assumption of Obligations, the Confidentiality Agreement, and the Non-Compete Agreement, attached hereto as Attachments A, E, and F respectively.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 43)

What This Means (2025 FDD)

According to the 2025 City Wide Franchise Disclosure Document, if a franchisee appoints a Manager to handle the daily operations of the franchised business, that Manager must sign three specific agreements. These agreements are the Guaranty and Assumption of Obligations, the Confidentiality Agreement, and the Non-Compete Agreement. These agreements are included as Attachments A, E, and F, respectively, within the Franchise Agreement.

This requirement ensures that the Manager is legally bound to uphold certain obligations and responsibilities similar to those of the franchisee. The Guaranty and Assumption of Obligations likely holds the Manager accountable for the financial and contractual commitments of the franchise. The Confidentiality Agreement protects City Wide's proprietary information and trade secrets. The Non-Compete Agreement prevents the Manager from engaging in any competing business activities that could harm the City Wide franchise.

It is important to note that City Wide's approval of a Manager can be withdrawn if the franchisee defaults on the Franchise Agreement. Additionally, City Wide retains the right to modify the criteria for Manager appointments, which could include changes to the required agreements. Therefore, prospective franchisees should carefully review these agreements and understand the implications for any Manager they may appoint.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.