Does the City Wide franchise agreement specify the method of payment for repairs made by City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, if a franchisee fails to maintain the condition and appearance of their office, City Wide can step in to make the necessary repairs. City Wide will notify the franchisee of the deficiencies and the actions needed to correct them. The franchisee has 30 days to begin a program to complete the required maintenance. If the franchisee does not take action, City Wide can enter the premises and make the repairs on the franchisee's behalf.
The franchisee is then responsible for repaying City Wide the entire cost of the repairs on demand. The franchise agreement does not specify a particular method of payment, but it does state that failure to make such payments constitutes a material breach of the agreement, which could lead to termination of the franchise agreement.
This means that a City Wide franchisee needs to be prepared to cover the costs of any repairs that City Wide deems necessary if they fail to maintain the required standards. While the agreement does not specify the payment method, it is crucial for franchisees to have a plan in place to promptly reimburse City Wide for these expenses to avoid breaching the agreement and potentially losing their franchise.
Prospective franchisees should discuss with City Wide what payment methods are acceptable and what the typical timeframe for repayment is to ensure they are fully prepared for this potential scenario.