Who bears the expense of obtaining the necessary permits and certifications for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.2 Permits and Certification.
Before commencing operation of the Franchised Business, Franchisee will, at Franchisee's expense, furnish CITY WIDE, for its approval, the following:
- 7.2.1 Copies of all permits and certifications as may be required for the lawful operation of the Franchised Business, together with copies of any building inspection reports and certifications from all governmental authorities having jurisdiction over the Designated Territory and the Franchised Business showing that all necessary permits have been obtained and that all requirements for operation have been met.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the franchisee is responsible for the expenses related to obtaining the necessary permits and certifications for their franchise. Specifically, before starting operations, the franchisee must provide City Wide with copies of all required permits and certifications for lawful operation. These documents must demonstrate that all necessary permits have been secured and that all operational requirements have been met according to the governing governmental authorities.
This requirement means a prospective City Wide franchisee needs to budget for these costs, which can vary significantly depending on the location and the specific requirements of the Designated Territory. These costs are in addition to the initial franchise fee and other startup expenses. It is essential for franchisees to research and understand the permit and certification requirements in their area to accurately estimate these expenses.
City Wide requires franchisees to furnish these documents for approval before commencing business. This ensures that each franchise operates legally and in compliance with local regulations. Failing to obtain the necessary permits and certifications can lead to legal issues, delays in opening, and potential fines or penalties. Therefore, securing these approvals is a critical step in the pre-opening phase of a City Wide franchise.