Can City Wide charge a franchisee a reasonable fee for its services in connection with the relocation of the City Wide Franchised Business?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
CITY WIDE will permit you to relocate your Franchised Business to an alternate territory within the same general vicinity ("Substitute Designated Territory"), which, at CITY WIDE's sole and absolute right, is a suitable location for the operation of the Franchised Business, if at the sole and absolute judgment of CITY WIDE, changes in the character of the Designated Territory are sufficiently detrimental to warrant relocation of the Franchised Business to the Substitute Designated Territory. CITY WIDE reserves the right to charge you a reasonable relocation fee as a condition of approval of any Substitute Designated Territory for the Franchised Business. Any such relocation will be at Franchisee's sole expense and CITY WIDE will have the right to charge Franchisee for any costs incurred by CITY WIDE, and a reasonable fee for its services, in connection with any such relocation of the Franchised Business.
Source: Item 12 — TERRITORY (FDD pages 36–39)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide does have the right to charge franchisees fees related to relocation. Specifically, if City Wide approves a franchisee's request to relocate their Franchised Business to a Substitute Designated Territory, City Wide reserves the right to charge a reasonable relocation fee as a condition of approval.
In addition to the relocation fee, the franchisee is responsible for covering all expenses associated with the relocation itself. City Wide also has the right to charge the franchisee for any costs incurred by City Wide, along with a reasonable fee for its services, related to the relocation.
This means that a City Wide franchisee considering relocation needs to factor in not only the direct costs of moving their business but also potential fees payable to City Wide for their approval and assistance in the relocation process. The FDD does not specify what constitutes a 'reasonable fee,' so prospective franchisees should discuss this in detail with City Wide to understand the potential financial implications of relocation.