Does City Wide assume responsibility or liability to the franchisee or third parties by providing approvals, advice, or services?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
4.7 No Responsibility or Liability. CITY WIDE will not, by any approvals, advice, or services provided to Franchisee, assume responsibility or liability to Franchisee or to any third party to which it would not otherwise be subject.
19.4 CITY WIDE will not, by virtue of any approvals, advice or services provided to Franchisee, assume responsibility or liability to Franchisee or any third parties to which CITY WIDE would not otherwise be subject.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide does not assume responsibility or liability to the franchisee or any third party through the provision of approvals, advice, or services. This is highlighted in two sections of Item 22, reinforcing City Wide's position.
This means that while City Wide may offer guidance, training, and support to franchisees, it is not liable for the outcomes of those services. The franchisee operates as an independent contractor and is ultimately responsible for the success and operation of their business. This arrangement is typical in franchising, where the franchisee bears the risk and reward of running the business.
This lack of liability extends to third parties as well, meaning that City Wide is not responsible for any issues that may arise between the franchisee and their customers or other entities. The franchisee is expected to indemnify and hold City Wide harmless from any losses, costs, or liabilities arising from the operation of the franchised business.
Prospective franchisees should understand that while City Wide provides support and resources, they are ultimately responsible for their business's performance and any liabilities that may arise. This underscores the importance of due diligence and careful planning before investing in a City Wide franchise.