What exclusive right does City Wide have regarding the Marks in the United States, Canada, and Mexico?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee additionally acknowledges that CITY WIDE has disclosed fully to Franchisee that CITY WIDE has the exclusive right throughout the United States, Canada and Mexico, under its License Agreement with CITY WIDE FRANCHISE HOLDING COMPANY, INC., to sub-license the use of the Marks for use as outlined in this Agreement. Franchisee further acknowledges that Franchisee's right to use the Marks is derived solely from this Agreement and is limited to Franchisee's conduct of the Franchised Business under and in compliance with this Agreement and all applicable standards, specifications, and operating procedures CITY WIDE prescribes from time to time during the term of the franchise. Any unauthorized use of the Marks by Franchisee is a breach of this Agreement and an infringement of the rights of CITY WIDE in and to the Marks. Franchisee acknowledges that all Franchisee's usage of the Marks and any goodwill established by
Franchisee's use of the Marks will inure to the exclusive benefit of CITY WIDE and that this Agreement does not confer on Franchisee any goodwill or other interests in the Marks. Franchisee will not, at any time during the Term of this Agreement or after its termination or expiration, contest the validity or ownership of any of the Marks or assist any other person in contesting the validity or ownership of any of the Marks.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide has the exclusive right to sub-license the use of its Marks throughout the United States, Canada, and Mexico. This right is granted to City Wide through a License Agreement with CITY WIDE FRANCHISE HOLDING COMPANY, INC., an affiliate of City Wide.
For a prospective franchisee, this means that City Wide, not the franchisee, controls the Marks and how they are used within the franchise system. The franchisee's right to use the Marks is solely derived from the Franchise Agreement and is limited to conducting the Franchised Business in compliance with the agreement's terms, standards, specifications, and operating procedures. Any unauthorized use of the Marks by the franchisee constitutes a breach of the agreement and an infringement of City Wide's rights.
This arrangement ensures that City Wide maintains consistent branding and quality control across all its franchise locations. The franchisee acknowledges that all goodwill established through their use of the Marks benefits City Wide exclusively, and the agreement does not grant the franchisee any independent interest in the Marks. The franchisee is also prohibited from contesting the validity or ownership of the Marks, either during or after the term of the agreement.
City Wide also retains the exclusive right to take legal action against any third party infringing on its Marks. Franchisees are obligated to cooperate with City Wide in any litigation related to the Marks, including executing necessary documents and actions as directed by City Wide's counsel. This further protects the brand's integrity and reputation, as City Wide has the sole discretion to defend and control its Marks.