What constitutes a failure to comply with the Operating Manual for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.4 Failure to follow the mandatory specifications and standards set forth in the Operating Manual, as amended from time to time, constitute a material breach of this Agreement. If such material breach is not cured within thirty (30) days of receipt of the written notice of default from CITY WIDE, CITY WIDE may terminate this Agreement.
7.15 Revenue and Profit Maximization; Budget and Strategic Plan. Franchisee will always use Franchisee's best efforts to diligently operate the Franchised Business so as to maximize the revenues and profits and will do all things reasonably requested by CITY WIDE to maximize revenues and profits. Franchisee always agrees and covenants to comply with CITY WIDE's minimum staffing requirements as set forth in the Operating Manual. Franchisee acknowledges and agrees that Franchisee's failure to comply with this requirement shall constitute a material default of this Agreement for which CITY WIDE may terminate this Agreement or: (a) reduce Franchisee's Designated Territory size; (b) reduce the number of field visits that CITY WIDE provides to Franchisee during the Agreement; (c) require Franchisee to attend additional training at Franchisee's expense; (d) prohibit Franchisee from attending any annual conference, convention, or training session that CITY WIDE may periodically conduct; (e) deem Franchisee ineligible for any awards bestowed upon franchisees by CITY WIDE and (f) reduce or eliminate the level of support and services CITY WIDE provides to Franchisee. Franchisee agrees to complete and submit to CITY WIDE on an annual basis a budget and strategic business plan before the end of Franchisee's fiscal year via CITY WIDE's budgeting platform. In the event CITY WIDE exercises its right in 7.15(a) above, the portion of the Designated Territory that is no longer part of the Designated Territory ("Eliminated Portion") may be granted by CITY WIDE to another franchisee to develop, own and operate a franchised business. If CITY WIDE grants the Eliminated Portion to another franchisee, Franchisee acknowledges and agrees that Franchisee's duties and obligations under this Agreement relating to operating the Franchised Business in the remaining part of the Designated Territory will continue in full force and effect so long as this Agreement is in effect. Notwithstanding the above, CITY WIDE will provide Franchisee with a period not to exceed one (1) year to cure the breach in 7.15(a).
Franchisee acknowledges and agrees there exists a direct correlation between sales staffing and the financial success of a Franchised Business. Accordingly, Franchisee is required to meet the minimum staffing levels as set forth in the Operating Manual.
- 7.3 Condition and Appearance of Office; Right of Inspection.
Franchisee will maintain the condition and appearance of the Office of the Franchised Business consistent with CITY WIDE standards, as set forth in the Operating Manual and otherwise in writing.
- 11.10 Software.
Franchisee will use exclusively and pay all sub-licensing fees to CITY WIDE for the software ("Software") in Franchisee's Franchised Business during the term of this Agreement, as set forth in the Operating Manual or otherwise in writing.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, failing to follow the mandatory specifications and standards outlined in the Operating Manual, as it may be updated, constitutes a material breach of the Franchise Agreement. If this breach is not resolved within 30 days after receiving written notice from City Wide, City Wide has the right to terminate the agreement.
The Operating Manual contains City Wide's proprietary information and is considered confidential. Franchisees must keep this information confidential both during and after the term of the Franchise Agreement. Franchisees are also required to meet minimum staffing levels as detailed in the Operating Manual, as a failure to do so constitutes a material default of the agreement.
Furthermore, franchisees must maintain the condition and appearance of their office in accordance with City Wide standards, as specified in the Operating Manual and other written communications. Franchisees are also obligated to use exclusively the software specified by City Wide and pay the associated sub-licensing fees, as detailed in the Operating Manual or in writing. These requirements ensure uniformity and quality across all City Wide franchise locations, protecting the brand's reputation and the interests of all franchisees.