What constitutes a default related to public health, safety, or sanitation for a City Wide franchise?

According to City Wide's 2025 Franchise Disclosure Document, a default relating to public health, safety, or sanitation occurs if a threat or substantial danger to public health, safety, welfare, or sanitation results from the construction, maintenance, or operation of the franchised business. This also includes any notice of violation of any law, ordinance, or regulation resulting from these activities.

For a prospective City Wide franchisee, this means that maintaining a safe and sanitary operation is critical to avoid being in default of the franchise agreement. This encompasses all aspects of the business, from the initial construction to the ongoing maintenance and daily operations. Franchisees must ensure they comply with all applicable laws, ordinances, and regulations related to public health and safety.

Failure to address any threats or violations could lead to City Wide declaring a default, which can have serious consequences, including potential termination of the franchise agreement. Therefore, franchisees should prioritize safety and sanitation and promptly address any issues that arise to maintain compliance and avoid default.