What is the condition for City Wide to consent to the assignment and transfer of the Franchise Agreements?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisee has elected to assign and transfer the Franchise Agreements and all Franchisee's rights thereunder in accordance with the terms of the Franchise Agreements; and
WHEREAS, CITY WIDE has agreed to consent to such assignment and transfer on condition that, among other things, Franchisee execute this Release.
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, City Wide's agreement to consent to the assignment and transfer of franchise agreements is conditional upon the franchisee executing a release. This release involves the franchisee relinquishing any claims against City Wide related to the offer or sale of the franchise agreement.
Specifically, the franchisee must agree to release City Wide and its related parties from any claims arising from the franchise agreement's offer or sale, including violations of federal or state laws. This encompasses all possible claims, known or unknown, that the franchisee may have against City Wide. The franchisee also covenants not to initiate any legal proceedings based on these released claims.
This condition means that before a City Wide franchisee can transfer their franchise to another party, they must sign a document releasing City Wide from any potential liabilities related to the initial sale of the franchise. This is a significant legal step that a franchisee should carefully consider, ideally with the advice of legal counsel, as it could impact their ability to pursue future claims against the franchisor.