What is the definition of 'fixtures' in the context of the City Wide franchise agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
s from all governmental authorities having jurisdiction over the Designated Territory and the Franchised Business showing that all necessary permits have been obtained and that all requirements for operation have been met.
- 7.3 Condition and Appearance of Office; Right of Inspection. Franchisee will maintain the condition and appearance of the Office of the Franchised Business consistent with CITY WIDE standards, as set forth in the Operating Manual and otherwise in writing. Franchisee will maintain such premises as CITY WIDE may from time to time require to maintain or improve the appearance and efficient operation of the Franchised Business, including, but not limited to, replacement of worn out or obsolete fixtures and signs, and repair of the Location. 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. Except for
those repairs that would constitute a public health or safety hazard, or are required by any governmental agency, any such remodeling requirement will be imposed only in a nondiscriminatory manner upon (i) all comparably situated CIT
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the term 'fixtures' is used in the context of maintaining the appearance and condition of the franchisee's office. While the FDD does not provide an explicit definition of 'fixtures,' it implies that fixtures are items within the office that contribute to its overall appearance and efficient operation.
The franchise agreement states that franchisees are responsible for replacing worn-out or obsolete fixtures to maintain City Wide's standards. If City Wide determines that the fixtures do not meet their standards, they will notify the franchisee, who then has 30 days to begin corrections. Failure to do so allows City Wide to make the repairs or replacements themselves at the franchisee's expense.
Prospective franchisees should note that maintaining or replacing fixtures could involve capital expenditures. Any remodeling requirement exceeding $25,000 will only be required if there is sufficient time left in the franchise term to amortize or depreciate the expenditure under the Internal Revenue Code. Franchisees should clarify with City Wide what specific items are considered 'fixtures' and what the typical costs for maintenance or replacement might be to budget accordingly.