What is the 'Designated Territory' as it relates to the City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.1 Subject to all the terms and conditions contained in this Agreement, CITY WIDE grants Franchisee the exclusive right and license to operate a Franchised Business using the System, Software (as defined in Section 11), and Marks solely in the territory ("Designated Territory") as outlined in Attachment B, which is attached to and made a part of this Agreement by reference. Franchisee accepts such right and license, subject to such terms and conditions, and agrees to operate the Franchised Business and to use the System, Software and Marks solely in connection with the Franchised Business.
- 1.2 So long as this Agreement is in force and effect and Franchisee is not in material default under any of its terms, Franchisee will have the exclusive right to operate a Franchised Business in the Designated Territory. Other than in the Designated Territory described in Attachment B, CITY WIDE may itself operate or license to others the right to operate Franchised Businesses utilizing the System and the Marks.
The determination of a Designated Territory's size and the Initial Territory Fee to be paid for such Designated Territory shall be at the sole and absolute right of CITY WIDE.
- 6.5 To retain rights to the Designated Territory, Franchisee must meet the annual revenue per capita growth ("Annual Revenue Per Capita Growth") in every year in the Term of the Agreement, as published on uscensus.gov. Specifically, Franchisee will be required to grow the gross revenues generated by the Franchised Business to no less than $0.20 per person per year. Franchisees must meet this requirement each year; however, CITY WIDE will measure this requirement using a three-year rolling average.
6.6 Franchisee will receive an exclusive Designated Territory, subject to the exceptions outlined below. The license is limited to the right to develop and operate one Franchised Business at the
Location within the Designated Territory, and does not include (i) any right to market or sell products or services identified by the Marks at any location other than the Location, or through any other channels or methods of distribution, including the Internet (or any existing or future form of electronic commerce including but not limited to social media, websites, mobile communication devices and 3D virtual worlds), except in accordance with policies stated in the Operating Manual; (ii) any right to sell products or services identified by the Marks to any person or entity for resale or further distribution; or (iii) any right to exclude, control, or impose conditions on CITY WIDE's development of future franchised, company, or affiliateowned Franchised Businesses at any time outside of the Territory.
6.7.2 Establish and license others to establish businesses under other systems using the Marks or other proprietary marks, which businesses may be located within or outside the Designated Territory, provided, however, that, except as specifically provided in the Franchise Agreement, CITY WIDE will not license or establish a business substantially like the Franchised Business and using the Marks within Franchisee's Designated Territory;
6.7.3 Sell the services, products, materials and related equipment authorized for Franchisee's Franchised Business under other trademarks, service marks and commercial symbols through similar or dissimilar channels of distribution and under terms CITY WIDE deems appropriate within and outside Franchisee's Designated Territory;
If Franchisee does not participate in the National Business Development Program or is unable to fully service a National Account in its Designated Territory, CITY WIDE, an affiliate, or a third party CITY WIDE designee (including another CITY WIDE franchisee) may provide the services necessary to fulfill a National Account in Franchisee's Designated Territory and F
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Designated Territory is the specific geographic area outlined in Attachment B of the Franchise Agreement, within which the franchisee is granted the exclusive right and license to operate a City Wide Franchised Business using the City Wide system, software, and marks. As long as the Franchise Agreement is active and the franchisee is not in material default, this exclusivity remains in effect. Outside of this Designated Territory, City Wide retains the right to operate or license others to operate similar franchised businesses. The determination of a Designated Territory's size and the Initial Territory Fee to be paid for such Designated Territory is at the sole and absolute right of City Wide.
However, City Wide can reduce the size of the Designated Territory if the franchisee fails to meet minimum staffing requirements or the Annual Revenue Per Capita Growth, which is measured against a benchmark of $0.20 per person per year, assessed as a three-year rolling average. If a franchisee does not participate in the National Business Development Program or cannot fully service a National Account in their territory, City Wide may allow another franchisee or third party to provide those services within the original franchisee's Designated Territory.
While franchisees have exclusive rights to operate within their Designated Territory, this is subject to certain limitations. The license is limited to one location and does not include the right to market or sell City Wide services through other channels like the internet, except as outlined in the Operating Manual. City Wide also retains the right to establish other businesses, even those using similar marks, outside the Designated Territory and can sell authorized services and products through different distribution channels, including the internet, both inside and outside the Designated Territory. Franchisees may be required to sell their rights to the Designated Territory back to City Wide or a City Wide-approved third party if they do not renew their Franchise Agreement.