What conditions must a potential City Wide transferee meet to be approved by City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| 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 |
| Franchisor | right to assign. | ||
| k. | "Transfer" by you – definition | Section 13 | Includes transfer of contract or assets or change in ownership. |
| l. | Franchisor's approval of transfer by you | Section 13 | CITY WIDE has the right to approve all transfers, 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 |
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 wishing to transfer their franchise must first seek approval from City Wide at least 60 days in advance. The franchisee must be in compliance with the existing Franchise Agreement and Operating Manual. Additionally, a transfer fee of $25,000 is required, along with any applicable third-party broker fees.
For the potential transferee to be approved, they must meet City Wide's standards, agree to make any required upgrades to the franchise, and sign the current form of the franchise agreement. The transferee is also responsible for paying all required fees, including the initial franchise fee.
These transfer conditions are typical in franchising, as franchisors want to ensure that any new franchisee is well-qualified and capable of maintaining brand standards. The $25,000 transfer fee is also standard, as it covers City Wide's administrative costs associated with the transfer process and the review of the potential transferee. Prospective franchisees should carefully consider these requirements and costs when evaluating a City Wide franchise.