What is the deadline for a City Wide franchisee to furnish proof of sufficient assets after the execution of the Franchise Agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Proof of Sufficient Assets. Within thirty (30) days after the execution of this Agreement, Franchisee must obtain, secure and furnish adequate proof of financing or furnish proof of the existence of assets in Franchisee's sole control, that is sufficient and in acceptable form to CITY WIDE, to fully and completely discharge the obligations of this Agreement (except Franchisee's continuing Royalty Fee and Marketing Fee contributions, and any other continuing obligation Franchisee owes CITY WIDE during the term of this Agreement, as defined and outlined in this Agreement). CITY WIDE will have the sole and absolute right to determine the sufficiency of all such proof of financing or assets. CITY WIDE will not begin training until Franchisee satisfies this requirement.
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 furnish proof of sufficient assets within thirty days after the execution of the Franchise Agreement. This proof must demonstrate that the franchisee has adequate financing or assets under their sole control to meet the obligations outlined in the agreement.
The purpose of this requirement is to ensure that the franchisee has the financial capacity to fulfill their commitments to City Wide. City Wide retains the sole right to determine whether the submitted proof of financing or assets is sufficient. This evaluation protects City Wide by ensuring franchisees are financially stable.
City Wide will not commence training for the new franchisee until this requirement is met. This condition underscores the importance of providing timely and acceptable proof of financial capability, as it directly impacts the franchisee's ability to begin operations and receive the necessary training from City Wide.