factual

What is the deadline for a City Wide franchisee to repay City Wide for repairs made on their behalf?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

If any time in CITY WIDE's judgment the general state of repair or the appearance of the premises of the Franchised Business or its equipment, fixtures, or signs does not meet CITY WIDE's standards, CITY WIDE will so notify Franchisee and specify the action Franchisee must take to correct such deficiency.

If Franchisee fails or refuses to initiate within thirty (30) calendar days after receipt of such notice, and continues to fail to implement a bona fide program to complete any required maintenance, CITY WIDE will have the right, in addition to all other remedies, to enter upon the premises of the Franchised Business and effect such repairs, painting, maintenance or replacements of equipment, fixtures or signs on Franchisee's behalf and Franchisee will repay CITY WIDE the entire costs on demand.

If Franchisee fails to make any such payments or remedy operational deficiencies, such failure will constitute a material breach of this Agreement and CITY WIDE may terminate this Agreement.

Source: Item 22 — CONTRACTS (FDD page 65)

What This Means (2025 FDD)

According to City Wide's 2025 Franchise Disclosure Document, if a franchisee fails to maintain the condition and appearance of their office according to City Wide standards, City Wide will notify the franchisee of the deficiency and the required corrective actions. The franchisee has 30 calendar days to begin implementing a program to complete the required maintenance. If the franchisee fails to do so, City Wide has the right to enter the premises and make the repairs themselves.

The franchisee is then obligated to repay City Wide the entire cost of the repairs 'on demand'. This means that City Wide does not specify a fixed repayment period but requires immediate payment after the repairs are completed and the costs are presented to the franchisee.

Failure to make these payments or remedy operational deficiencies constitutes a material breach of the Franchise Agreement, potentially leading to termination of the agreement. This clause underscores the importance of maintaining City Wide's standards for the appearance and operation of the franchised business and the financial responsibility of the franchisee to cover related costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.