What is the exception to City Wide terminating another franchise agreement that would not trigger immediate termination?

According to City Wide's 2025 Franchise Disclosure Document, if a franchisee has another franchise agreement with City Wide, and City Wide terminates that other agreement, it generally constitutes a default under the present agreement. However, there's an exception: if the termination of the other franchise agreement is solely due to the franchisee's failure to meet the Annual Revenue Per Capita Growth requirements or similar growth requirements, it will not trigger immediate termination of the current agreement.

This exception is significant for prospective franchisees who may be considering owning multiple City Wide franchises. It provides a degree of protection, ensuring that failure to meet specific growth targets in one franchise will not automatically jeopardize their other franchise agreements with City Wide. This clause offers some reassurance, as it acknowledges that revenue growth can be influenced by various external factors and provides a buffer against immediate termination based solely on this metric.

However, it is important to note that this exception is narrowly defined. It only applies when the termination of the other franchise agreement is solely based on failure to meet growth requirements. Any other breaches or defaults under the other franchise agreement could still trigger termination of all agreements. Franchisees should carefully review the terms of all their franchise agreements with City Wide and ensure they understand the specific performance metrics and potential consequences of failing to meet them.