What conditions must a City Wide franchisee meet to obtain approval for a transfer?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | reasonable attorneys’ fees, incurred by CITY WIDE subsequent to termination or expiration in connection with obtaining injunctive or other relief under the Franchise Agreement; provide all signage to CITY WIDE; and take further action as may be required by the Operating Manual or reasonably requested by CITY WIDE; and, if due to your default, forfeit any royalty rebate. | |
| j. Assignment of contract by | Section 13 | No restriction on CITY WIDE’s right to assign. |
| Franchisor | ||
| k. “Transfer” by you – definition | Section 13 | Includes transfer of contract or assets or change in ownership. |
| l. Franchisor’s approval of transfer | Section 13 | CITY WIDE has the right to approve all transfers, |
| by you | but will not unreasonably withhold approval. | |
| m. Conditions for Franchisor’s approval of transfer | Section 13 | You must ask CITYWIDE at least 60 days before to approve a transfer; you must pay a Transfer Fee equal to $25,000 and pay any applicable third-party broker fee; you must be in compliance with the Franchise Agreement and Operating Manual; transferee must meet CITY WIDE’s standards, agree to make required upgrades, sign the current form of franchise agreement, and pay all required fees (including Initial Fees). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–47)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their franchise must meet several conditions to gain approval from City Wide. The franchisee must request approval at least 60 days before the intended transfer date. This advance notice allows City Wide ample time to evaluate the proposed transfer and ensure a smooth transition.
Financially, the franchisee is responsible for paying a $25,000 transfer fee to City Wide, as well as covering any third-party broker fees associated with the transfer. This fee likely covers City Wide's administrative costs and the evaluation of the transfer.
In addition to the financial obligations, the franchisee must be in full compliance with both the Franchise Agreement and the Operating Manual. This ensures that the franchise is in good standing before the transfer occurs. The prospective transferee must also meet City Wide's standards, agree to make any required upgrades to the franchise, sign the current form of the franchise agreement, and pay all required fees, including initial fees. These requirements ensure that the new franchisee is well-prepared and committed to upholding City Wide's standards and practices.