Does the City Wide franchise agreement specify the process for resolving disputes regarding the condition of the premises?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 CIT
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, the franchise agreement outlines specific procedures regarding the condition and appearance of the franchised business premises. City Wide requires franchisees to maintain their office in accordance with the brand's standards, as detailed in the Operating Manual. If City Wide determines that the premises' condition or appearance does not meet these standards, they will notify the franchisee, specifying the necessary corrective actions.
If a City Wide franchisee fails to initiate these corrections within 30 calendar days of receiving notice, and does not implement a program to complete the required maintenance, City Wide has the right to enter the premises and perform the necessary repairs, painting, maintenance, or replacements on behalf of the franchisee. The franchisee is then obligated to repay City Wide for all costs incurred. Failure to make these payments or remedy operational deficiencies constitutes a material breach of the agreement, potentially leading to termination.
However, any remodeling requirements exceeding $25,000 will only be enforced if there is sufficient time remaining in the franchise term to amortize or depreciate the expenditure under the Internal Revenue Code. This condition does not apply to repairs that constitute a public health or safety hazard or are required by a governmental agency. These requirements must be imposed in a non-discriminatory manner on all similarly situated City Wide franchisees and company-owned businesses.