factual

What constitutes a 'bona fide program' to complete required maintenance for a City Wide franchise?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

If any time in CITY WIDE's judgment the general state of repair or the appearance of the premises of the Franchised Business or its equipment, fixtures, or signs does not meet CITY WIDE's standards, CITY WIDE will so notify Franchisee and specify the action Franchisee must take to correct such deficiency.

If Franchisee fails or refuses to initiate within thirty (30) calendar days after receipt of such notice, and continues to fail to implement a bona fide program to complete any required maintenance, CITY WIDE will have the right, in addition to all other remedies, to enter upon the premises of the Franchised Business and effect such repairs, painting, maintenance or replacements of equipment, fixtures or signs on Franchisee's behalf and Franchisee will repay CITY WIDE the entire costs on demand.

If Franchisee fails to make any such payments or remedy operational deficiencies, such failure will constitute a material breach of this Agreement and CITY WIDE may terminate this Agreement.

Source: Item 22 — CONTRACTS (FDD page 65)

What This Means (2025 FDD)

According to the 2025 City Wide Franchise Disclosure Document, the specifics of what constitutes a 'bona fide program' to complete required maintenance are not explicitly defined. However, the FDD does state that franchisees must maintain the condition and appearance of their office consistent with City Wide standards, as detailed in the Operating Manual and other written communications.

If City Wide determines that the franchisee's premises, equipment, fixtures, or signs do not meet their standards, City Wide will notify the franchisee and specify the necessary corrective actions. The franchisee then has thirty (30) calendar days to initiate a 'bona fide program' to complete the required maintenance.

Failure to initiate such a program within the given timeframe allows City Wide to enter the premises and complete the repairs or replacements on the franchisee's behalf, with the franchisee responsible for repaying all costs upon demand. Failure to make these payments or remedy operational deficiencies constitutes a material breach of the agreement, potentially leading to termination. Prospective franchisees should seek clarification from City Wide regarding the specific elements and expectations of a 'bona fide program' to ensure compliance and avoid potential penalties or termination.

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.