What are the consequences if a City Wide franchisee fails to obtain a specific required certification?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
not participate in the National Business Development Program or is unable to fully service a National Account in its Designated Territory, CITY WIDE, an affiliate, or a third party CITY WIDE designee (including another CITY WIDE franchisee) may provide the services necessary to fulfill a National Account in Franchisee's Designated Territory and Franchisee will not be entitled to any compensation in connection with the transaction; and
SECTION 7. Standards of Operation
Franchisee shall comply with all requirements contained in this Agreement, the Operating Manual and other written policies CITY WIDE supplies to Franchisee. Mandatory specifications, standards, operating procedures and rules CITY WIDE prescribes from time to time in the Operating Manual or otherwise communicated to Franchisee in writing will constitute provisions of this Agreement as if fully outlined in this Agreement. Any required standards set forth herein, the Operating Manual exist to protect CITY WIDE's interests in the System and the Marks and not to establish any control or duty to take control over those matters that are reserved to Franchisee. All references to this Agreement will include all such mandatory specifications, standards and operating procedures and rules. Franchisee's failure to comply with requirements set forth in this Agreement concerning quality and performance will constitute a material breach of and cause for termination of this Agreement. Franchisee will comply with the entire System including, but not limited to:
- 7.1 Commencing Operations. Franchisee will commence operation of the Franchised Business not later than one hundred twenty (120) calendar days after the execution and acceptance of this Agreement. Franchisee shall apply to all appropriate government authority for such permits, licenses and/or approvals which may be required to operate Franchisee's Franchised Business within the Designated Territory for Franchisee's Franchised Business within fourteen (14) calendar days after execution and acceptance of this Agreement. Such permits, licenses, and/or approvals may include, but not be limited to, a general contractor's license. Prior to the opening of the Franchised Business, Franchisee will have complied with all CITY WIDE's pre-opening standards and specifications. If for any reason Franchisee fails to commence operation as provided in this Agreement, such failure will be considered a default and CITY WIDE may terminate this Agreement.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee's failure to comply with the requirements outlined in the Franchise Agreement regarding quality and performance constitutes a material breach, potentially leading to the termination of the agreement. Before commencing operations, the franchisee must furnish City Wide with copies of all required permits and certifications for lawful operation. This includes building inspection reports and certifications from governmental authorities, demonstrating that all necessary permits have been obtained and operational requirements have been met. The franchisee is responsible for obtaining these at their own expense.
Specifically, the franchisee must apply to all appropriate government authorities for the necessary permits, licenses, and approvals to operate their franchised business within their designated territory within fourteen calendar days after the execution and acceptance of the Franchise Agreement. These permits, licenses, and approvals may include a general contractor's license.
If a City Wide franchisee fails to commence operation as provided in the Franchise Agreement, such failure will be considered a default, and City Wide may terminate the agreement. This underscores the importance of securing all necessary permits and certifications before starting the business to avoid potential termination of the franchise agreement.