What attachment contains the Acknowledgment Regarding Ownership for City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding Section 13.2, if Franchisee or any Affiliated Company is a corporation, the terms and conditions of this Section 13 will not be deemed to apply to any Transfer of the voting stock of, or other ownership interest in, Franchisee or such Affiliated Company, which would not, alone or together with other related or unrelated, previous, simultaneous or proposed Transfers, result in a loss of Control (as defined below) of Franchisee or an Affiliated Company by the persons and/or entities listed on the Acknowledgment Regarding Ownership attached to this Agreement as Attachment G.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, Attachment G to the Franchise Agreement contains the Acknowledgment Regarding Ownership. This document is crucial because it identifies the individuals or entities that control the franchise.
The Acknowledgment Regarding Ownership is significant in the context of transferring ownership or control of the City Wide franchise. Specifically, Section 13.3 outlines that certain transfers of voting stock or ownership interest in the franchise or an affiliated company do not require franchisor approval if they do not result in a loss of control by the individuals or entities listed on Attachment G.
Control, as defined in the FDD, means owning 51% or more of the voting power or having the contractual power to designate a majority of the directors. This acknowledgment helps determine whether a proposed transfer triggers the need for City Wide's consent, ensuring that the franchise maintains consistent management and operational standards. For a prospective franchisee, understanding this attachment is essential for future business planning and potential exit strategies.