Can City Wide establish further requirements concerning the establishment and operation of the Office?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
's expense, furnish CITY WIDE, for its approval, the following:
- 7.2.1 Copies of all permits and certifications as may be required for the lawful operation of the Franchised Business, together with copies of any building inspection reports and certifications 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, franchisees must adhere to the standards City Wide sets for the condition and appearance of their office. City Wide communicates these standards through the Operating Manual and other written means. Franchisees are expected to maintain their office in accordance with these standards, which may include replacing worn-out fixtures and signs, as well as repairing the location.
If City Wide determines that the office's condition, appearance, equipment, fixtures, or signs do not meet their standards, they will notify the franchisee and specify the necessary corrective actions. The franchisee then has thirty days to begin implementing a program to address the deficiencies. Should the franchisee fail to do so, City Wide reserves the right to enter the premises and make the necessary repairs or replacements on the franchisee's behalf, with the franchisee responsible for covering all associated costs upon demand.
Failure to make these payments or correct operational deficiencies constitutes a material breach of the franchise agreement, potentially leading to termination. However, remodeling requirements involving capital expenditures exceeding $25,000 will only be enforced if there is sufficient time remaining in the franchise term to amortize or depreciate the expenditure under the Internal Revenue Code. These requirements are applied uniformly to all similarly situated City Wide franchisees and company-owned businesses, except for repairs needed for public health, safety, or governmental regulations.