How can the City Wide franchise agreement be amended, changed, or varied?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.3 No amendment, change, or variance from this Agreement will be binding upon Franchisee or CITY WIDE, except by mutual written agreement executed by Franchisee and CITY WIDE. If an amendment of this Agreement is executed at Franchisee's request, any legal fees, or costs of preparation in connection with that amendment will be paid by Franchisee. Notwithstanding the foregoing, Franchisee acknowledges and agrees that if, at any time during the Term, sixty percent (60%) or more of the franchisees then operating within the CITY WIDE System provide their written consent to a written request by CITY
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, any amendment, change, or variance to the franchise agreement must be in writing and agreed upon by both City Wide and the franchisee to be binding. This means that verbal agreements or understandings will not be considered valid modifications to the original contract. If the franchisee requests the amendment, they may be responsible for covering any legal fees or costs City Wide incurs in preparing the amendment.
However, there is an exception to this rule. If at least 60% of the franchisees operating within the City Wide system provide written consent to a written request by City Wide, then the amendment will be binding on all franchisees, including those who did not individually consent. This allows City Wide to implement changes across the system with a supermajority agreement, rather than requiring unanimous consent from every franchisee.
This clause ensures that the franchise agreement remains adaptable to changing business conditions or legal requirements, while also protecting the interests of both the franchisor and the franchisees. Franchisees should carefully consider the implications of any proposed amendments and seek legal counsel if needed, especially if they are being asked to bear the costs of preparing the amendment. The supermajority clause also highlights the importance of franchisee communication and collective action within the City Wide system.