What aspects of the response to a Cyber Event can City Wide control?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Cyber Event occurs, City Wide reserves the right, but shall not have any obligation, to perform and/or control and/or cause its third-party consultants to perform and/or control all aspects of the response to the Cyber Event including, without limitation, the investigation, containment and resolution of the Cyber Event and all communications.
City Wide's control of the response to a Cyber Event shall not create any liability for City Wide or additional rights for Franchisee, entitle Franchisee to damages or relieve Franchisee of Franchisee's indemnification obligations under Section 7.
Franchisee shall reimburse City Wide for all of City Wide's out-of-pocket costs and expenses incurred in responding to and remedying any Cyber Event if such Cyber Event is conclusively determined to have been caused solely by Franchisee or directly related to Franchisee's Franchised Business operations.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide reserves the right, but not the obligation, to control all aspects of the response to a Cyber Event. This includes the investigation, containment, and resolution of the Cyber Event, as well as all related communications. However, this control does not create any liability for City Wide, provide additional rights to the franchisee, entitle the franchisee to damages, or relieve the franchisee of their indemnification obligations.
In practical terms, this means that while City Wide can step in to manage a cyber event affecting a franchisee's business, they are not required to do so. If City Wide does take control, the franchisee cannot hold them liable for any outcomes or claim damages. The franchisee remains responsible for their own obligations, including indemnifying City Wide under certain circumstances.
Furthermore, the franchisee may be required to reimburse City Wide for all out-of-pocket costs and expenses incurred in responding to and remedying a Cyber Event if the event was conclusively determined to have been caused solely by the franchisee or directly related to the franchisee's franchised business operations. This highlights the importance of the franchisee maintaining robust cybersecurity measures and adhering to best practices to minimize the risk of cyber incidents and potential financial liabilities.