What compliance is required of the franchisee at the time of the proposed transfer for City Wide to approve it?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
so long as Franchisee is in full compliance with this Agreement at the time of the proposed Transfer.
2.2.5 Franchisee must not be in default of any provision of this Agreement, any amendment to this Agreement, or any other agreement between CITY WIDE or its respective subsidiaries or affiliates, and at all times Franchisee must have substantially complied with all the terms and conditions of this Agreement and any other agreements between the parties during the respective Terms, including but not limited to then current Annual Revenue Per Capita Growth requirement (See Section 6.5).
2.2.6 Franchisee's operation of the Franchised Business must be in full compliance with the standards, specifications, requirements, instructions set forth in this Agreement and in the Operating Manual of CITY WIDE.
2.2.7 Franchisee's operations under all other Franchise Agreements, if any, must be in full compliance with the standards, specifications, requirements, instructions set forth under all other Franchise Agreements and in the Operating Manual of CITY WIDE.
2.2.8 Franchisee must have satisfied all monetary obligations Franchisee owes to CITY WIDE and its subsidiaries and affiliates and timely met such obligations throughout the respective Term.
Prior to the consummation of any such Transfer, Franchisee will pay all amounts due to CITY WIDE and cure all other breaches of this Agreement and any other agreement with CITY WIDE, and Franchisee will execute and deliver to CITY WIDE a general and absolute release in a form satisfactory to CITY WIDE, of any and all claims against CITY WIDE or its affiliates, officers, directors, employees, agents, and representatives;
- 13.4.7 Franchisee will comply with all other applicable transfer requirements as designated in the Operating Manual or otherwise by CITY WIDE in writing.
- 13.4.8 Franchisee will be required to pay to CITY WIDE the Transfer Fee as set forth below in Section 13.5.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee must meet several compliance requirements for City Wide to approve a transfer of ownership. The franchisee must be in full compliance with the existing Franchise Agreement at the time of the proposed transfer. This includes not being in default of any provision within the agreement, any amendments to it, or any other agreements with City Wide or its affiliates. The franchisee must have substantially complied with all terms and conditions during the term, including meeting the Annual Revenue Per Capita Growth requirement.
Furthermore, the franchisee's operation of the franchised business must be in full compliance with the standards, specifications, requirements, and instructions set forth in the Franchise Agreement and the City Wide Operating Manual. If the franchisee has other franchise agreements with City Wide, those operations must also be in full compliance. All monetary obligations owed to City Wide and its subsidiaries must be satisfied, and these obligations must have been met in a timely manner throughout the term.
Prior to the transfer, the franchisee is also required to pay all amounts due to City Wide and cure any other breaches of the agreement. Additionally, the franchisee must execute and deliver a general and absolute release, in a form satisfactory to City Wide, of any and all claims against City Wide and its affiliates. The franchisee must also comply with all other applicable transfer requirements as designated in the Operating Manual or otherwise communicated by City Wide in writing and pay the Transfer Fee. These conditions ensure that the franchise is in good standing before ownership changes, protecting City Wide's brand and standards.