What does City Wide consider a 'new Franchisee' in the context of the Business Development Center Agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2. | Term. | a. | NEW. Any new Franchisee signing a new Franchise Agreement for a new Franchised Business | is a new Franchisee to City Wide, the term of this Agreement will begin | on | the | "Effective | Date" | and | will | continue | for | a | period | of | twelve | (12) | months, | unless | terminated sooner in accordance | with Section 3 of this Agreement ("New Franchisee Initial Term"). | b. | EXISTING. If Franchisee | is an existing Franchise of | City | Wide | and | wishes | to | engage | City | Wide | for | the | BDC Services, the term of this Agreement will begin on date services to begin, the | ("Effective Date") and will continue for a period of six (6) months, unless terminated sooner | in accordance with Section 3 of this Agreement ("Existing Franchisee | Initial | Term").
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a 'new Franchisee' in the context of the Business Development Center Agreement is defined as any new franchisee signing a new Franchise Agreement for a new Franchised Business. This definition is important because it determines the term length of the Business Development Center Agreement. For new franchisees, the agreement begins on the Effective Date, which is when the Franchised Business opens, and continues for a period of twelve months, unless terminated sooner.
In contrast, an existing City Wide franchisee who wishes to engage City Wide for Business Development Center Services has a different agreement term. For existing franchisees, the term of the Business Development Center Agreement begins on the date services are set to begin, also known as the Effective Date, and continues for a period of six months, unless terminated earlier.
This distinction in term lengths reflects the different needs and stages of development for new versus existing franchisees. New franchisees, starting a new business, may require a longer period of business development support to establish their clientele and market presence. Existing franchisees, on the other hand, may seek shorter-term support for specific business development initiatives or to supplement their ongoing efforts.