What conditions must be met for a release or waiver to be valid after the City Wide franchise agreement is in effect?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
2.2.9 Franchisee must execute the form of franchise agreement being used by CITY WIDE at the time Franchisee renews, including the Successor Addendum (See Attachment J) (collectively, "Successor Franchise Agreement"), which Successor Franchise Agreement will in all respects supersede this Agreement and the terms of which may differ from the terms of this Agreement, including, without limitation, a higher percentage Royalty Fee (See Section 3.7.1) and Marketing Fee (See Section 3.7.2(a).
2.2.10 Franchisee must pay CITY WIDE a renewal fee ("Successor Fee") equal to fifty percent (50%) of the then-current Initial Franchise Fee set forth in the Franchise Disclosure Document , at the time Franchisee executes the Successor Franchise Agreement which amount will be instead of payment of a new Initial Franchise Fee.
2.2.11 Franchisees must comply with CITY WIDE's then-current criteria for operating a Franchised Business, including CITY WIDE's then-current franchisee qualification and training requirements.
2.2.12 Franchisee must execute a general release, in a form CITY WIDE prescribes, releasing any claims against CITY WIDE or its subsidiaries, affiliates, officers, directors, agents, and employees which Franchisee may have or assert at time of renewal; and
2.2.13 Franchisee must present evidence satisfactory to CITY WIDE that Franchisee has the right to remain in possession of the Location of the Office (See Item 12) for the Term, or a mutually acceptable alternative Location.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, several conditions must be met for a release or waiver to be valid, specifically in the context of renewing the franchise agreement. A franchisee must execute a general release in a form prescribed by City Wide. This release covers any claims against City Wide, its subsidiaries, affiliates, officers, directors, agents, and employees that the franchisee may have at the time of renewal.
In addition to the release, the franchisee must not be in default of any provision of the existing 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 of all agreements throughout the term, including meeting the Annual Revenue Per Capita Growth requirement. The operation of the franchised business, as well as operations under any other franchise agreements with City Wide, must be in full compliance with the standards, specifications, requirements, and instructions set forth in the agreements and the Operating Manual.
Furthermore, the franchisee must have satisfied all monetary obligations owed to City Wide and its subsidiaries and affiliates, meeting these obligations in a timely manner throughout the term. The franchisee is also required to execute the form of franchise agreement being used by City Wide at the time of renewal, including the Successor Addendum, which will supersede the existing agreement and may contain different terms, such as higher royalty and marketing fees. The franchisee must also pay City Wide a renewal fee equal to 50% of the then-current Initial Franchise Fee.
Finally, the franchisee must comply with City Wide's then-current criteria for operating a franchised business, including qualification and training requirements, and present satisfactory evidence of the right to remain in possession of the office location for the term, or provide a mutually acceptable alternative location. These conditions collectively ensure that the franchisee is in good standing and committed to the continued success of the City Wide franchise system.