What must a City Wide franchisee execute as part of the successor agreement?
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.
2.2.12 Franchisee must execute a general release, in a form CITY WIDE prescribes, releasing any claims against CITY WIDE or its subsidiaries, affiliates, officers, directors, agents, and employees which Franchisee may have or assert at time of renewal; and
2.2.13 Franchisee must present evidence satisfactory to CITY WIDE that Franchisee has the right to remain in possession of the Location of the Office (See Item 12) for the Term, or a mutually acceptable alternative Location.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, to qualify for a successor term, a franchisee must execute the franchise agreement form that City Wide uses at the time of renewal. This includes a Successor Addendum. This new agreement completely replaces the original and may have different terms. These differing terms can include higher royalty and marketing fees.
In addition to executing the Successor Franchise Agreement, the franchisee must also execute a general release. This release waives any claims against City Wide and its related parties that the franchisee may have at the time of renewal. The franchisee must also provide satisfactory evidence to City Wide that they have the right to remain in possession of their current office location for the duration of the Successor Term, or provide a mutually acceptable alternative location.
Furthermore, the City Wide franchisee must pay a Successor Fee equal to 50% of the then-current Initial Franchise Fee. This fee is paid when the Successor Franchise Agreement is executed and is instead of paying a new Initial Franchise Fee. The franchisee must also comply with City Wide's current criteria for operating a franchised business, including meeting the current franchisee qualification and training requirements.