Does the City Wide Franchise Agreement allow for modification of the non-compete agreement?

According to City Wide's 2025 Franchise Disclosure Document, City Wide has the right to modify the non-compete agreement. Specifically, City Wide, in its sole and absolute discretion, can reduce the scope of any covenant set forth in Paragraphs 3 and 4 of the Non-Compete Agreement, or any portion thereof, without the franchisee's consent. This modification becomes effective immediately upon the franchisee receiving written notice. The franchisee is then obligated to comply with the modified covenant, and this modified version is fully enforceable, even if there are conflicting provisions in the Franchise Agreement.

This clause provides City Wide with considerable flexibility to adjust the non-compete terms as they see fit. For a prospective franchisee, this means the initial non-compete terms outlined in the agreement could be altered during the franchise term. The franchisee must be prepared to adapt to these changes and comply with the new restrictions. It is important to note that while City Wide can reduce the scope of the non-compete, the FDD does not state whether City Wide can expand the scope of the non-compete agreement.

This level of franchisor control over the non-compete agreement is not uncommon, but franchisees should carefully consider the implications. While a reduced scope might seem beneficial, it also introduces uncertainty. Franchisees should seek clarification on what circumstances might trigger such modifications and how City Wide has historically used this right. Understanding these factors can help a franchisee better assess the potential impact on their future business activities should they ever leave the City Wide franchise system.