What constitutes a material breach of the Franchise Agreement regarding staffing requirements for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
default of the Franchise Agreement. From time to time, CITY WIDE may modify the criteria outlined herein and establish new criteria as it relates to the appointment of the Manager.
You must comply with CITY WIDE's staffing requirements which are detailed in the Operating Manual. Your failure to comply with these requirements will constitute a material breach of the Franchise Agreement and will permit CITY WIDE to terminate the Franchise Agreement.
Any partner of yours that is a partnership; each shareholder, director, and officer of yours that is a corporation;
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 43)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, failing to comply with the company's staffing requirements, as detailed in the Operating Manual, constitutes a material breach of the Franchise Agreement. This means that if a franchisee does not meet the minimum staffing levels set forth in the Operating Manual, City Wide has grounds to terminate the agreement.
City Wide emphasizes the direct correlation between sales staffing and the financial success of a franchised business. Franchisees are therefore required to adhere to the minimum staffing levels outlined in the Operating Manual. The specific staffing requirements are not detailed in Item 15 or Item 22 of the FDD, but rather are found in the Operating Manual, which franchisees have access to during the term of the Franchise Agreement.
It is important for prospective franchisees to carefully review the Operating Manual and understand the staffing requirements before entering into a franchise agreement with City Wide. Failure to maintain the required staffing levels can lead to serious consequences, including termination of the franchise agreement. Franchisees should also be aware that City Wide can modify the Operating Manual periodically, which may include changes to the staffing requirements.