What is the definition of 'equipment' in the context of the City Wide franchise agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Specifications for fixtures, equipment, signs, furnishings, and other components and accessories for the Franchised Business which Franchisee will purchase at Franchisee's expense for Franchisee to use in conducting the Franchised Business at the Location will be as outlined in the Operating Manual.
CITY WIDE may from time to time provide Franchisee with a comprehensive list of established sources of equipment and supplies necessary for the operation of a Franchised Business (See Section 7.9).
If at 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 proposes to use at the Location any equipment or any brand of product which is not then approved by CITY WIDE as meeting its minimum specifications and quality standards, or to purchase any product from a supplier that is not then designated by CITY WIDE as an Approved Supplier on the Approved Suppliers List, Franchisee
must first notify CITY WIDE and must, upon request by CITY WIDE, submit samples and such other information as CITY WIDE requires for examination and testing or to otherwise determine whether the proposed supply or supplier meets CITY WIDE's specifications and quality standards. CITY WIDE will not consider requests by Franchisee or any affiliate of Franchisee to become Approved Suppliers. A charge not to exceed the reasonable cost of CITY WIDE's inspection and evaluation plus the actual cost of any test performed by CITY WIDE will be paid to CITY WIDE by Franchisee or the supplier. CITY WIDE shall notify Franchisee whether it approves or disapproves of the proposed supply or supplier. If CITY WIDE approves the proposed supply or supplier, Franchisee may purchase that supply or use that supplier in connection with the Franchised Business, unless CITY WIDE notifies Franchisee that such approval has been revoked. CITY WIDE reserves the right, at its option, to re-inspect the facilities and products of any supplier of an approved item and to revoke its approval of any item which fails to continue to meet any of CITY WIDE's criteria.
Franchisee will be responsible for the costs of all enterprise upgrades and replacements of all equipment required to operate the Software.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, the term 'equipment' refers to items necessary for conducting the franchised business at the franchisee's location. Specifications for equipment are outlined in City Wide's Operating Manual. City Wide may provide franchisees with a list of established equipment sources.
City Wide retains the right to inspect the franchisee's equipment and can require the franchisee to take corrective action if the equipment does not meet City Wide's standards. If the franchisee fails to maintain the equipment, City Wide can perform the necessary maintenance or replacements at the franchisee's expense. Failure to address deficiencies or make payments can result in a breach of the franchise agreement.
If a franchisee wants to use equipment not already approved by City Wide, the franchisee must notify City Wide and submit samples for examination and testing. City Wide may charge a fee for the inspection and evaluation. The franchisee can only use the proposed equipment if City Wide approves it, and City Wide reserves the right to revoke its approval if the equipment no longer meets its standards. Franchisees are responsible for the costs of all enterprise upgrades and replacements of all equipment required to operate the software.