Does the City Wide franchise agreement create a fiduciary relationship between City Wide and the franchisee?

According to City Wide's 2025 Franchise Disclosure Document, the franchise agreement explicitly states that it does not create a fiduciary relationship between City Wide and its franchisees. The agreement establishes the franchisee as an independent contractor, clarifying that they are not an agent, legal representative, joint venturer, partner, employee, or servant of City Wide for any purpose. This distinction is crucial as it defines the legal and financial responsibilities of each party.

As an independent contractor, the City Wide franchisee has no authority to make contracts, agreements, warranties, or representations on behalf of City Wide, nor can they incur debts or create obligations for City Wide. This reinforces the franchisee's autonomy in managing their business operations, subject to the conditions and obligations outlined in the franchise agreement. The franchisee's success largely depends on their ability to independently control and direct their business.

This arrangement is typical in franchising, where franchisees operate independently while adhering to the franchisor's system and standards. The absence of a fiduciary relationship means that City Wide does not have a legal obligation to act in the best financial interests of the franchisee, and vice versa, beyond what is stipulated in the franchise agreement. Prospective franchisees should carefully review the agreement and seek legal counsel to fully understand their rights and obligations under this independent contractor relationship.