What is the deadline for a City Wide franchisee to commence operation of the Franchised Business after the execution and acceptance of the Franchise Agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will commence operation of the Franchised Business not later than one hundred twenty (120) calendar days after the execution and acceptance of this Agreement.
Franchisee shall apply to all appropriate government authority for such permits, licenses and/or approvals which may be required to operate Franchisee's Franchised Business within the Designated Territory for Franchisee's Franchised Business within fourteen (14) calendar days after execution and acceptance of this Agreement.
Such permits, licenses, and/or approvals may include, but not be limited to, a general contractor's license.
Prior to the opening of the Franchised Business, Franchisee will have complied with all CITY WIDE's pre-opening standards and specifications.
If for any reason Franchisee fails to commence operation as provided in this Agreement, such failure will be considered a default and CITY WIDE may terminate this Agreement.
- 7.2 Permits and Certification.
Before commencing operation of the Franchised Business, Franchisee will, at Franchisee's expense, furnish CITY WIDE, for its approval, the following:
- 7.2.1 Copies of all permits and certifications as may be required for the lawful operation of the Franchised Business, together with copies of any building inspection reports and certifications from all governmental authorities having jurisdiction over the Designated Territory and the Franchised Business showing that all necessary permits have been obtained and that all requirements for operation have been met.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a new franchisee must commence operation of their franchised business within 120 calendar days after the franchise agreement is executed and accepted. Failing to commence operations within this timeframe is considered a default of the agreement, which could allow City Wide to terminate the agreement.
In addition to commencing operations, the franchisee is required to apply to all appropriate government authorities for the necessary permits, licenses, and/or approvals to operate the franchised business within their designated territory within 14 calendar days after the execution and acceptance of the Franchise Agreement. These permits and licenses may include a general contractor's license.
Prior to opening the City Wide franchised business, the franchisee must comply with all of City Wide's pre-opening standards and specifications. Furthermore, before commencing operations, the franchisee must furnish City Wide with copies of all required permits and certifications for lawful operation, along with building inspection reports and certifications from governmental authorities, demonstrating that all necessary permits have been obtained and all operational requirements have been met.