Can City Wide assign the agreement, and if so, what are the consequences?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
13.1 Transfer by CITY WIDE. This Agreement and all rights and duties hereunder may be freely assigned or transferred by CITY WIDE and will be binding upon and inure to the benefit of CITY WIDE'S successors and assigns.
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- Assignment. City Wide may sell, transfer or assign this Agreement at any time and thereby be released from any further obligations to Franchisee. Franchisee may not sell, transfer or assign Franchisee's rights to this Agreement without the prior written consent of City Wide, which may be granted or denied.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide has the right to freely assign or transfer the Franchise Agreement. Specifically, City Wide may sell, transfer, or assign the agreement at any time.
This means that a new entity could take over the franchisor's responsibilities. The agreement explicitly states that such an assignment releases City Wide from any further obligations to the franchisee.
For a prospective franchisee, this clause signifies that the relationship with City Wide could be transferred to a different company, potentially altering the support, brand management, or overall franchise system. While City Wide can assign the agreement, the franchisee is not allowed to sell, transfer, or assign their rights to the agreement without prior written consent from City Wide, which City Wide may grant or deny.