Is a City Wide franchisee allowed to engage in activities contrary to the best interest of City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.22 Best Interest of the System.
Franchisee will not engage in any activity, conduct or practice that is contrary to the best interest of CITY WIDE or Franchisee or that is reasonably anticipated to result in litigation with Franchisee's suppliers or customers, or in public criticism of CITY WIDE or the Franchised Business generally.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees are prohibited from engaging in activities that are not in the company's best interest. Specifically, the franchise agreement states that a franchisee will not participate in any activity, conduct, or practice that goes against the best interest of City Wide or the franchisee. This also includes actions reasonably anticipated to result in litigation with the franchisee's suppliers or customers, or public criticism of City Wide or the franchised business.
This provision ensures that franchisees act in a manner that protects the brand's reputation and the overall success of the City Wide franchise system. By preventing franchisees from engaging in potentially harmful activities, City Wide aims to maintain a consistent and positive image, foster healthy relationships with suppliers and customers, and avoid legal disputes that could negatively impact the business.
For a prospective franchisee, this means they must always consider how their actions could affect City Wide's reputation and business interests. Any behavior that could lead to negative publicity, legal issues, or damage to relationships with suppliers or customers is strictly prohibited. Franchisees should be mindful of this clause and seek clarification from City Wide if they are unsure whether a particular activity could be considered contrary to the company's best interests.