What is the deadline for a City Wide franchisee to provide proof of sufficient assets?
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 provide proof of sufficient assets within thirty days of signing the franchise agreement. This proof must demonstrate that the franchisee has enough financing or assets to cover their obligations under the agreement. However, this excludes the ongoing Royalty and Marketing Fees, and any other continuous obligations the franchisee will owe City Wide during the term of the agreement.
City Wide retains the sole right to determine whether the provided proof of financing or assets is sufficient. It is important to note that City Wide will not commence the franchisee's training program until this requirement is met. This condition underscores the importance of having readily available and verifiable assets or financing in place when entering into a franchise agreement with City Wide.
This requirement is fairly standard in franchising, as franchisors need to ensure that franchisees have the financial stability to operate the business successfully and meet their financial obligations to the franchisor. Prospective franchisees should carefully assess their financial situation and ensure they can meet this requirement within the specified timeframe to avoid delays in training and commencement of their City Wide franchise operations.