What must a City Wide franchisee do with electronic and printed copies of the Operating Manual upon expiration or termination of the franchise agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ory specifications, standards, operating procedures and rules prescribed from time to time by CITY WIDE for the Franchised Business and information relative to Franchisee's other obligations under this Agreement and the operation of the Franchised Business. CITY WIDE will have the right to add to and otherwise modify and replace the Operating Manual from time to time, provided that no such addition or modification will alter Franchisee's fundamental status and rights under this Agreement.
- 8.2 The Operating Manual will alwaysremain the sole property of CITY WIDE and Franchisee will promptly cease to use any electronic versions and destroy any printed copies upon the expiration or other termination of this Agreement. Franchisee agrees and covenants that Franchisee will not disclose, duplicate, or otherwise use in an unauthorized manner any portion of the Operating Manual.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, upon the expiration or termination of the franchise agreement, a franchisee must promptly cease using any electronic versions of the Operating Manual and destroy any printed copies. The Operating Manual remains the sole property of City Wide, and franchisees are prohibited from disclosing, duplicating, or using it in any unauthorized manner. This obligation extends both during and after the term of the agreement.
Specifically, at the end of the agreement term, franchisees must immediately cease operating as a City Wide franchisee and discontinue using any part of the City Wide system or marks in their business. They must also pay all outstanding sums to City Wide, which, upon termination due to franchisee default, includes lost royalties, marketing fees, and other associated costs.
In addition to destroying all tangible copies of the Operating Manual, franchisees must also destroy the Software and all other Confidential Information provided by City Wide, along with any equipment or property owned by City Wide. Franchisees are not allowed to retain any copies or records of these items, except for their copy of the franchise agreement, correspondence with City Wide, and documents needed for legal compliance. This ensures that all confidential and proprietary information is returned to City Wide, protecting the integrity of the franchise system.
This requirement is a standard practice in franchising to protect the franchisor's intellectual property and maintain uniformity across the franchise network. Prospective franchisees should understand that they will lose all rights to use the City Wide system and its associated materials upon termination or expiration of the agreement.