Is City Wide allowed to assign the franchise agreement, and if so, what are the implications?

According to City Wide's 2025 Franchise Disclosure Document, City Wide has the right to assign the franchise agreement. Specifically, City Wide may sell, transfer, or assign the agreement at any time. The FDD states that upon assignment, City Wide is released from any further obligations to the franchisee.

This clause means that a franchisee could find themselves dealing with a completely different company than the one they initially signed up with. The new entity taking over the franchise agreement may have different management styles, business strategies, or financial resources. This could impact the level of support and guidance a franchisee receives, potentially affecting their business operations and profitability.

While City Wide is free to assign the agreement, the franchisee does not have the same freedom. The franchisee may not sell, transfer, or assign their rights to the agreement without prior written consent from City Wide, which City Wide can either grant or deny. This difference in assignability highlights a power imbalance in the franchise relationship, where City Wide retains significant control over the future of the franchise agreement.