How far in advance must a City Wide franchisee request approval for a transfer?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| reasonable attorneys' | |||
| fees, incurred by CITY | |||
| WIDE subsequent to termination or expiration in | |||
| connection with obtaining injunctive or other relief | |||
| under the Franchise Agreement; provide all signage | |||
| to CITY WIDE; and take further action as may be | |||
| required by the Operating | |||
| Manual or reasonably | |||
| requested by CITY WIDE; and, if due to your | |||
| default, forfeit any royalty rebate. | |||
| j. | Assignment of contract by | Section 13 | No restriction on CITY WIDE's |
| Franchisor | right to assign. | ||
| k. | "Transfer" by you – definition | Section 13 | Includes transfer of contract or assets or change in ownership. |
| l. | Franchisor's approval of transfer by you | Section 13 | CITY WIDE has the right to approve all transfers, but will not unreasonably withhold approval. |
| m. | Conditions for Franchisor's approval of transfer | Section 13 | You must ask CITYWIDE at least 60 days before to approve a transfer; you must pay a Transfer Fee equal to $25,000 and pay any applicable third-party broker fee; you must be in compliance with the Franchise Agreement and Operating Manual; transferee must meet CITY WIDE's standards, agree to make required upgrades, sign the current form of franchise agreement, and pay all required fees (including Initial Fees). |
| n. | Franchisor's right of first refusal to acquire your business | Section 20 | If you propose to sell the Franchised Business, its assets or part of the ownership |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–47)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee must request approval for a transfer at least 60 days in advance. This requirement allows City Wide ample time to evaluate the proposed transfer and the potential transferee. The 60-day period ensures that City Wide can properly assess whether the transferee meets their standards and is likely to uphold the brand's reputation and operational standards.
In addition to providing advance notice, the franchisee must also meet other conditions for the transfer to be approved. These conditions include paying a $25,000 transfer fee, covering any applicable third-party broker fees, and ensuring compliance with the Franchise Agreement and Operating Manual. The prospective transferee must also meet City Wide's standards, agree to make any required upgrades, sign the current form of the franchise agreement, and pay all required fees, including initial fees.
City Wide also retains the right of first refusal to acquire the franchisee's business. If a franchisee proposes to sell their business, City Wide has 60 days to match the terms offered by a third party. This provision allows City Wide to maintain control over the franchise network and ensure that the business remains aligned with its strategic goals. These stipulations are typical in franchising, as they protect the brand and ensure a smooth transition when ownership changes.