What constitutes a violation of law in connection with the operation of a City Wide Franchised Business?

According to City Wide's 2025 Franchise Disclosure Document, a franchisee violates a law if, through an act or omission, they permit a violation of any law, ordinance, rule, or regulation of a governmental body or agency in connection with the operation of the franchised business. However, this is not considered a violation if the franchisee disputes the legal application of the law in good faith and seeks relief through an appropriate administrative or judicial forum. This clause ensures that City Wide franchisees operate their businesses in compliance with all applicable laws and regulations.

This provision is fairly standard in franchising, as franchisors want to ensure their brand is not associated with illegal or unethical business practices. The exception for franchisees who are genuinely contesting a law is also typical, protecting franchisees from being penalized for legitimate legal challenges.

For a prospective City Wide franchisee, this means understanding and adhering to all local, state, and federal laws relevant to their business. It also means being prepared to defend their business practices if challenged, but also understanding their right to contest laws they believe are unfairly applied. Franchisees should consult with legal counsel to ensure they fully understand their obligations and rights in this area.