factual

Is the City Wide franchisee allowed to assign, transfer, or convey any claim after signing the release?

Q: Is the City Wide franchisee allowed to assign, transfer, or convey any claim after signing the release?

- 5. No Assignment. Franchisee represents and warrants to CITY WIDE that it has not assigned, transferred, or conveyed to any third party all or any part of or partial or contingent interest in any of the released matters which are called for to be released by this Release now or in the future, that it is aware of no third party who contends or claims otherwise, and that it shall not after this time purport to assign, transfer, or convey any such claim. Source: Item 23 — RECEIPT (FDD pages 65–271)

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

1. No Assignment. Franchisee represents and warrants to CITY WIDE that it has not assigned, transferred, or conveyed to any third party all or any part of or partial or contingent interest in any of the released matters which are called for to be released by this Release now or in the future, that it is aware of no third party who contends or claims otherwise, and that it shall not after this time purport to assign, transfer, or convey any such claim.

Source: Item 23 — RECEIPT (FDD pages 65–271)

What This Means (2025 FDD)

According to the 2025 City Wide Franchise Disclosure Document, a franchisee is prohibited from assigning, transferring, or conveying any claim after signing the release. The franchisee warrants to City Wide that they have not assigned, transferred, or conveyed any part of the released matters to a third party, and they are not aware of any third party claiming otherwise.

This restriction is in place to ensure that City Wide is protected from future claims related to the franchise agreement. By signing the release, the franchisee confirms they have not already transferred any potential claims and agrees not to do so in the future. This provision aims to provide clarity and prevent complications arising from third-party involvement in claims against City Wide.

The release also specifies that it is governed by the laws of Kansas, and any legal action must be brought in a court covering Johnson County, Kansas. This clause ensures that any disputes related to the release will be handled in a specific jurisdiction, providing predictability for both the franchisee and City Wide. Franchisees should be aware of this when considering the implications of the release.

It's important to note that the release does not waive any liability City Wide may have under the Washington Franchise Investment Protection Act. Additionally, franchisees residing in or operating in California, Maryland, or Washington should not sign the Statement of Franchisee, indicating specific legal considerations in those states.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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