Does the City Wide franchise agreement specify the geographic area in which the Franchised Business must operate?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
rceability of any Mark; (b) the validity or enforceability of any copyright, patent, or trade secret.
In consideration of the mutual covenants and agreements contained in this Agreement and for other good and valuable consideration, the receipt of which is acknowledged, the parties to this Agreement agree as follows:
The Recitals stated above are incorporated herein by reference into this Agreement.
SECTION 1. Grant of Franchise
- 1.1 Subject to all the terms and conditions contained in this Agreement, CITY WIDE grants Franchisee the exclusive right and license to operate a Franchised Business using the System, Software (as defined in Section 11), and Marks solely in the territory ("Designated Territory") as outlined in Attachment B, which is attached to and made a part of this Agreement by reference. Franchisee accepts such right and license, subject to such terms and conditions, and agrees to operate the Franchised Business and to use the System, Software and Marks solely in connection with the Franchised Business.
- 1.2 So long as this Agreement is in force and effect and Franchisee is not in material default under any of its terms, Franchisee will have the exclusive right to operate a Franchised Business in the Designated Territory. Other than in the Designated Territory described in Attachment B, CITY WIDE may itself operate or license to others the right to operate Franchised Businesses utilizing the System and the Marks.
- 1.3 The CITY WIDE System is a comprehensive system for operating businesses under the trade name and service mark "CITY WIDE" and "CITY WIDE FACILITY SOLUTIONS" respectively, which specialize in analyzing client facility maintenance needs and matching independent contractors with those clients to meet their needs.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the franchise agreement grants the franchisee the exclusive right to operate within a specific geographic area. Section 1.1 of the agreement states that City Wide grants the franchisee the exclusive right and license to operate a franchised business using City Wide's system, software, and marks solely in the Designated Territory as outlined in Attachment B of the agreement. The franchisee accepts this right and license, agreeing to operate the franchised business and use the system, software, and marks only within this Designated Territory.
Section 1.2 further clarifies that as long as the agreement is in effect and the franchisee is not in material default, the franchisee has the exclusive right to operate a City Wide franchise in the Designated Territory. Outside of this Designated Territory, City Wide retains the right to operate or license others to operate franchised businesses utilizing the City Wide system and marks. This establishes a clear boundary for the franchisee's exclusive operational rights.
To retain rights to the Designated Territory, Section 6.5 states that the franchisee must meet the annual revenue per capita growth in every year in the Term of the Agreement, as published on uscensus.gov. Specifically, Franchisee will be required to grow the gross revenues generated by the Franchised Business to no less than $0.20 per person per year. If the franchisee fails to satisfy the Annual Revenue Per Capita Growth requirement on a rolling two (2) year average, it will be deemed a material breach of this Agreement, and City Wide will then have the right to reduce the size of Franchisee's Designated Territory, grant additional franchises within the Designated Territory or to terminate this Agreement, provided that there will be a period not to exceed one (1) year to cure such a breach. This requirement ensures that the franchisee actively develops the market within their designated area.