Where in the City Wide Franchise Agreement can I find information about the franchisee's obligations for maintenance, appearance, and remodeling requirements?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
's expense, furnish CITY WIDE, for its approval, the following:
- 7.2.1 Copies of all permits and certifications as may be required for the lawful operation of the Franchised Business, together with copies of any building inspection reports and certifications from all governmental authorities having jurisdiction over the Designated Territory and the Franchised Business showing that all necessary permits have been obtained and that all requirements for operation have been met.
- 7.3 Condition and Appearance of Office; Right of Inspection. Franchisee will maintain the condition and appearance of the Office of the Franchised Business consistent with CITY WIDE standards, as set forth in the Operating Manual and otherwise in writing. Franchisee will maintain such premises as CITY WIDE may from time to time require to maintain or improve the appearance and efficient operation of the Franchised Business, including, but not limited to, replacement of worn out or obsolete fixtures and signs, and repair of the Location. If any time in CITY WIDE's judgment the general state of repair or the appearance of the premises of the Franchised Business or its equipment, fixtures, or signs does not meet CITY WIDE's standards, CITY WIDE will so notify Franchisee and specify the action Franchisee must take to correct such deficiency. If Franchisee fails or refuses to initiate within thirty (30) calendar days after receipt of such notice, and continues to fail to implement a bona fide program to complete any required maintenance, CITY WIDE will have the right, in addition to all other remedies, to enter upon the premises of the Franchised Business and effect such repairs, painting, maintenance or replacements of equipment, fixtures or signs on Franchisee's behalf and Franchisee will repay CITY WIDE the entire costs on demand. If Franchisee fails to make any such payments or remedy operational deficiencies, such failure will constitute a material breach of this Agreement and CITY WIDE may terminate this Agreement. Except for
those repairs that would constitute a public health or safety hazard, or are required by any governmental agency, any such remodeling requirement will be imposed only in a nondiscriminatory manner upon (i) all comparably situated CITY WIDE franchisees and (ii) all comparably situated CITY WIDE-owned businesses; provided further that any capital expenditure otherwise required under this Agreement in excess of
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 28–29)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, Section 7.3 of Item 22 discusses the franchisee's obligations regarding the condition and appearance of their office. It states that franchisees must maintain their office to City Wide standards, as detailed in the Operating Manual or in writing. This includes replacing worn or obsolete fixtures and signs, and repairing the location as needed.
City Wide has the right to notify a franchisee if the premises, equipment, fixtures, or signs do not meet their standards, specifying the necessary corrective actions. If the franchisee fails to begin these corrections within 30 calendar days, City Wide can perform the repairs themselves, and the franchisee must cover the costs. Failure to make these payments or correct operational deficiencies can lead to a breach of the agreement and potential termination.
However, any remodeling requirements exceeding $25,000 will only be enforced if there is enough time left in the franchise term to amortize or depreciate the expenditure under the Internal Revenue Code. Additionally, these remodeling requirements must be applied non-discriminatorily to all similarly situated City Wide franchisees and company-owned businesses, unless the repairs are needed for public health, safety, or are required by a governmental agency. Section 7.4 also states that the franchisee must maintain and operate the franchised business in a good, clean, and safe manner in compliance with City Wide standards.