Besides the franchise agreement, where else might a City Wide franchisee find warranties or guarantees regarding potential sales volume, profit, income, or success?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 30.2 CITY WIDE expressly disclaims the making of, and Franchisee acknowledge that Franchisee have not received from CITY WIDE or its employees, agents, or representatives, any warranty or guaranty, express or implied, as to the potential sales volume, profit, income, or success of the Franchised Business, EXCEPT THOSE CONTAINED IN ITEM 19 OF THE FRANCHISE DISCLOSURE DOCUMENT FURNISHED TO FRANCHISEE AT LEAST FOURTEEN (14) DAYS PRIOR TO THE EXECUTION OF THIS AGREEMENT**.**
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees acknowledge that City Wide has not provided any guarantees regarding potential sales volume, profit, income, or success of the franchised business, except those contained in Item 19 of the Franchise Disclosure Document. Item 19 is the section of the FDD where franchisors may, but are not required to, make financial performance representations.
This means that prospective City Wide franchisees should not rely on any verbal or written promises of financial success outside of what is specifically stated in Item 19 of the FDD. It is critical for potential franchisees to carefully review Item 19 (if present) and understand exactly what financial information City Wide is willing to stand behind.
If Item 19 is absent or does not provide the level of detail desired, a prospective franchisee should directly ask City Wide for more detailed financial performance information, keeping in mind that City Wide is not obligated to provide it. It is also advisable to conduct independent research and due diligence, including speaking with existing franchisees, to get a realistic understanding of the potential financial performance of a City Wide franchise.