Does the City Wide franchise agreement state that the franchisee's success depends on their ability as an independent business operator?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
SECTION 26. Caveat.
THE SUCCESS OF THE BUSINESS VENTURE CONTEMPLATED TO BE UNDERTAKEN BY FRANCHISEE BY VIRTUE OF THIS AGREEMENT IS SPECULATIVE AND DEPENDS, TO A LARGE EXTENT, UPON THE ABILITY OF FRANCHISEE AS AN INDEPENDENT BUSINESSMAN, AND FRANCHISEE'S ACTIVE PARTICIPATION IN THE DAILY AFFAIRS OF THE FRANCHISED BUSINESS, AS WELL AS OTHER FACTORS. CITY WIDE DOES NOT MAKE ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE POTENTIAL SUCCESS OF THE FRANCHISED BUSINESS.
SECTION 30. Acknowledgments
- 30.1 Franchisee understands and acknowledges that the Franchised Business involves business risks; that Franchisee's sales volume, profit, income, and success is dependent on Franchisee's ability as an independent business operator.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the franchise agreement emphasizes that a franchisee's success is significantly dependent on their capabilities as an independent business operator. Specifically, Section 30.1 acknowledges that the franchisee's sales volume, profit, income, and overall success are tied to their ability to operate independently. This highlights the importance of the franchisee's business acumen and entrepreneurial skills in driving the performance of their City Wide franchise.
Furthermore, Section 26, Caveat, reinforces this point by stating that the success of the business venture depends, to a large extent, on the franchisee's ability as an independent businessman and their active participation in the daily affairs of the franchised business. This caveat serves as a reminder that while City Wide provides a system and support, the franchisee's own efforts and capabilities are crucial for achieving the desired outcomes. City Wide makes no guarantees regarding the potential success of the franchised business, placing the onus on the franchisee to manage and grow their business effectively.
These acknowledgements underscore that while City Wide offers a franchise system, the franchisee's individual skills, dedication, and business management abilities are critical determinants of their financial success. Prospective franchisees should carefully consider their own capabilities and readiness to take on the responsibilities of an independent business owner before investing in a City Wide franchise.