What constitutes a failure or refusal to initiate maintenance for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee 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. Franchisee will maintain such premises as CITY WIDE may from time to time require to maintain or improve the appearance and efficient operation of the Franchised Business, including, but not limited to, replacement of worn out or obsolete fixtures and signs, and repair of the Location. 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. Except for
those repairs that would constitute a public health or safety hazard, or are required by any governmental agency, any such remodeling requirement will be imposed only in a nondiscriminatory manner upon (i) all comparably situated CIT
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee's failure or refusal to initiate required maintenance occurs when they do not start a program to correct deficiencies within thirty calendar days after receiving notice from City Wide. This notice will specify the actions the franchisee needs to take to meet City Wide's standards for the condition and appearance of the franchised business's premises, equipment, fixtures, or signs.
If a City Wide franchisee fails to initiate a maintenance program within the specified timeframe, City Wide has the right to enter the premises and perform the necessary repairs, painting, maintenance, or replacements on behalf of the franchisee. The franchisee is then obligated to repay City Wide the entire cost of these actions upon demand.
Furthermore, if the City Wide franchisee fails to make these payments or remedy operational deficiencies, it constitutes a material breach of the Franchise Agreement, potentially leading to termination of the agreement. However, remodeling requirements that exceed $25,000 are subject to certain conditions related to amortization or depreciation under the Internal Revenue Code, and will only be imposed in a non-discriminatory manner.