What is the deadline for a City Wide franchisee to provide adequate proof of financing or sufficient assets after executing 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 has a specific timeframe to demonstrate their financial capability. Within thirty days after the Franchise Agreement is executed, the franchisee must provide City Wide with adequate proof of financing or evidence of sufficient assets under their control. This proof must be in a form acceptable to City Wide, ensuring the franchisee can meet the financial obligations outlined in the agreement.
This requirement does not extend to the franchisee's ongoing Royalty Fee, Marketing Fee contributions, or any other continuous financial obligations during the term of the agreement. City Wide retains the sole right to determine whether the submitted proof of financing or assets is sufficient. It is important to note that City Wide will not commence training for the new franchisee until this financial verification requirement is met.
In practical terms, this means a prospective City Wide franchisee needs to have their financial documentation readily available and organized. They should understand what City Wide considers acceptable proof and be prepared to submit it promptly after signing the Franchise Agreement. Failure to meet this deadline or provide satisfactory proof could delay training and potentially impact the franchisee's ability to start operations on schedule. Therefore, franchisees should clarify any uncertainties regarding acceptable documentation with City Wide beforehand to ensure a smooth onboarding process.