What is considered a Cyber Event for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
including employees) including laptop hardware, answering Franchisee's reasonable questions about access to and operation of the Technology System by e-mail, or in written and/or electronic documents.
- h. IT Services will include minor Software upgrades and modifications; provided, however, City Wide reserves the right to determine when major upgrades or modifications are necessary and shall have the right to charge Franchisee a reasonable fee for the same. If City Wide determines that a major upgrade or modification is necessary, Franchisee shall implement the Software change in a manner and time designated by City Wide.
- i. City Wide will be responsible for issuing and maintaining all security and access passwords and will issue and change such access upon Franchisee's reasonable request.
- j. Franchisee will exert its best efforts to protect each Technology System against a cyber event including any claims related to data breach, identify theft or theft of personal information ("Cyber Event"). If a Cyber Event occurs, City Wide reserves the right, but shall not have any obligation, to perform and/or control and/or cause its third-party consultants to perform and/or control all aspects of the response to the Cyber Event including, without limitation, the investigation, containment and resolution of the Cyber Event and all communications.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a Cyber Event is defined as any claims related to data breach, identity theft, or theft of personal information. As a City Wide franchisee, you are expected to exert your best efforts to protect each Technology System against such cyber events. This includes implementing and maintaining appropriate data security safeguards.
In the event of a Cyber Event, City Wide reserves the right, but not the obligation, to manage all aspects of the response, including investigation, containment, resolution, and communications. However, City Wide's involvement does not create any liability for them or additional rights for the franchisee, nor does it entitle the franchisee to damages or relieve them of their indemnification obligations.
Furthermore, if a Cyber Event is determined to have been caused solely by the franchisee or directly related to their franchised business operations, the franchisee is responsible for reimbursing City Wide for all out-of-pocket costs and expenses incurred in responding to and remedying the event. Franchisees are also expected to comply with all applicable laws regarding data privacy, data security, and security breaches, and should seek advice from their own legal and security consultants to ensure full compliance with data security safeguards.