factual

What constitutes abandonment of the City Wide franchised business?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 14.1.10 If Franchisee fails to operate the Franchised Business during normal business hours for a period of seven (7) days or more without the prior written consent of CITY WIDE or any other circumstance which would lead a reasonable person to believe that Franchisee has permanently left the Franchised Business, and CITY WIDE will declare that Franchisee have abandoned the business for purposes of 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 will be considered to have abandoned their business if they fail to operate the franchised business during normal business hours for a period of seven days or more without prior written consent from City Wide. Additionally, any other circumstance that would lead a reasonable person to believe that the franchisee has permanently left the franchised business can also be considered abandonment by City Wide.

This clause in the franchise agreement protects City Wide from potential losses and damages to its brand reputation that could occur if a franchisee were to abruptly cease operations without notice. It allows City Wide to take action to ensure the continuity of the business and maintain service to customers in the designated territory.

For a prospective City Wide franchisee, this means they must maintain consistent operation of their business during normal business hours unless they have obtained prior written consent from City Wide for any closures or interruptions. Failure to do so could result in City Wide declaring the business abandoned, which could lead to termination of the franchise agreement. It is important for franchisees to communicate proactively with City Wide regarding any potential operational challenges or planned absences to avoid being in violation of this clause.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.