What is the document described in this addendum for City Wide franchise agreements?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
2.2.9 Franchisee must execute the form of franchise agreement being used by CITY WIDE at the time Franchisee renews, including the Successor Addendum (See Attachment J) (collectively, "Successor Franchise Agreement"), which Successor Franchise Agreement will in all respects supersede this Agreement and the terms of which may differ from the terms of this Agreement, including, without limitation, a higher percentage Royalty Fee (See Section 3.7.1) and Marketing Fee (See Section 3.7.2(a).
2.2.10 Franchisee must pay CITY WIDE a renewal fee ("Successor Fee") equal to fifty percent (50%) of the then-current Initial Franchise Fee set forth in the Franchise Disclosure Document , at the time Franchisee executes the Successor Franchise Agreement which amount will be instead of payment of a new Initial Franchise Fee.
2.2.11 Franchisees must comply with CITY WIDE's then-current criteria for operating a Franchised Business, including CITY WIDE's then-current franchisee qualification and training requirements.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, the addendum discussed is related to a Successor Franchise Agreement. Specifically, Section 2.2.9 outlines that to renew their franchise agreement, a franchisee must execute the form of franchise agreement being used by City Wide at the time of renewal, including a Successor Addendum. This new agreement is referred to as the "Successor Franchise Agreement."
The Successor Franchise Agreement supersedes the original agreement and its terms may differ. These differences can include a higher percentage for both the Royalty Fee and the Marketing Fee. This implies that franchisees should anticipate potential increases in these fees upon renewal.
In addition to executing the Successor Franchise Agreement, franchisees must also pay City Wide a renewal fee, termed the "Successor Fee." This fee is equal to fifty percent (50%) of the then-current Initial Franchise Fee as detailed in the Franchise Disclosure Document at the time of renewal. This Successor Fee is paid instead of a new Initial Franchise Fee. Franchisees must also comply with City Wide's then-current criteria for operating a franchised business, including current franchisee qualification and training requirements.