What is the City Wide franchisee applying for, according to the addendum?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
2.2.9 Franchisee must execute the form of franchise agreement being used by CITY WIDE at the time Franchisee renews, including the Successor Addendum (See Attachment J) (collectively, "Successor Franchise Agreement"), which Successor Franchise Agreement will in all respects supersede this Agreement and the terms of which may differ from the terms of this Agreement, including, without limitation, a higher percentage Royalty Fee (See Section 3.7.1) and Marketing Fee (See Section 3.7.2(a).
2.2.10 Franchisee must pay CITY WIDE a renewal fee ("Successor Fee") equal to fifty percent (50%) of the then-current Initial Franchise Fee set forth in the Franchise Disclosure Document , at the time Franchisee executes the Successor Franchise Agreement which amount will be instead of payment of a new Initial Franchise Fee.
2.2.11 Franchisees must comply with CITY WIDE's then-current criteria for operating a Franchised Business, including CITY WIDE's then-current franchisee qualification and training requirements.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the franchisee is applying for a Successor Franchise Agreement, as indicated by the Successor Addendum (Attachment J). This agreement supersedes the original agreement and may contain different terms, including potentially higher Royalty Fees (Section 3.7.1) and Marketing Fees (Section 3.7.2(a)).
To renew their franchise agreement, a City Wide franchisee must not be in default of any existing agreements with City Wide or its affiliates and must have substantially complied with all terms and conditions of the current agreement. The franchisee's business operations must fully adhere to the standards and specifications outlined in both the agreement and the City Wide Operating Manual. Additionally, all monetary obligations to City Wide and its subsidiaries must be satisfied in a timely manner.
The franchisee must execute the Successor Franchise Agreement, which is the current form used by City Wide at the time of renewal. A Successor Fee is required, amounting to fifty percent (50%) of the then-current Initial Franchise Fee, instead of paying a new full Initial Franchise Fee. Franchisees must also meet City Wide's current criteria for operating a franchised business, including any updated franchisee qualification and training requirements.
This Successor Addendum modifies specific sections of the Successor Franchise Agreement, such as those related to standards of operation, permits, and certifications. It also clarifies that capitalized terms not defined in the addendum have the same meaning as in the Successor Franchise Agreement. The addendum is binding and ensures that all other terms and conditions of the Successor Franchise Agreement remain in full force and effect, except as specifically modified within the addendum itself.