Is a City Wide franchisee considered a third-party beneficiary of any other agreement to which City Wide is a party?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 30.5 Franchisee acknowledges that Franchisee is not, nor is Franchisee intended to be, a third party beneficiary of any other agreement or contractual relationship to which CITY WIDE is a party.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, a franchisee is not considered a third-party beneficiary of any other agreement or contractual relationship to which City Wide is a party. This is explicitly stated in the franchise agreement. This means that the franchisee does not have the right to enforce any agreements that City Wide has with other parties.
This provision protects City Wide from potential legal claims by franchisees who might try to benefit from contracts City Wide has with suppliers, vendors, or other franchisees. It clarifies that the franchisee's rights and obligations are solely defined by the franchise agreement itself, and not by any external agreements City Wide may have.
For a prospective franchisee, this means they cannot rely on any agreements City Wide has with other entities to ensure their business operations or profitability. Their relationship is strictly with City Wide under the terms of the franchise agreement. It is important for the franchisee to carefully review the franchise agreement and understand all its terms and conditions, as it is the sole document governing their rights and responsibilities.