What conditions must a 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 $25,000 and pay any applicable third-party broker fee; you must be in compliance with the Franchise Agreement and |
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 also pay a $25,000 transfer fee, in addition to any third-party broker fees that may apply. Furthermore, the franchisee must be in compliance with both the Franchise Agreement and the City Wide Operating Manual.
For the potential transferee to be approved, they must meet City Wide's standards, agree to complete any required upgrades to the franchise, and sign the current version of the franchise agreement. The transferee is also responsible for paying all required fees, including the initial franchise fee.
These transfer conditions are fairly standard in the franchise industry. The transfer fee compensates City Wide for their time and expenses in reviewing and approving the transfer. Ensuring the transferee meets City Wide's standards and agrees to the current franchise agreement protects the brand and maintains consistency across the franchise system. Franchisees should carefully consider these requirements and associated costs when planning to sell their City Wide franchise.