How far in advance must a City Wide franchisee request approval from City Wide before transferring the franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | 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 right to assign. |
| Franchisor | ||
| k. “Transfer” by you – definition | Section 13 | Includes transfer of contract or assets or change in ownership. |
| l. Franchisor’s approval of transfer | Section 13 | CITY WIDE has the right to approve all transfers, |
| by you | 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 of Franchisee, CITY WIDE will have a right of first refusal for 60 days to purchase for the price, terms and conditions offered to you (except CITY WIDE may substitute cash for payment terms). |
| o. |
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 from City Wide at least 60 days before a transfer can take place. This advance notice allows City Wide to assess the proposed transfer and ensure that all conditions are met.
In addition to providing 60 days' notice, the franchisee must also pay a Transfer Fee of $25,000 and any applicable third-party broker fees. The franchisee must be in compliance with the Franchise Agreement and Operating Manual. The prospective 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.
City Wide also retains the right of first refusal to acquire the franchisee's business. If the franchisee proposes to sell the business, its assets, or part of the ownership, City Wide has 60 days to purchase it under the same terms offered to the third party, with the option to substitute cash for payment terms. This right could potentially delay or prevent a transfer to another buyer if City Wide chooses to exercise it.
These conditions are typical in franchising, as they allow the franchisor to maintain brand standards and control the quality of franchisees entering the system. Prospective City Wide franchisees should carefully consider these requirements and the associated costs when planning for a potential future sale of their franchise.