Where must a City Wide franchisee live?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
At all times Franchisee will be directly engaged in the day-to-day management and oversight of the Franchised Business for the purpose of generating business and increasing the inherent value of the Franchised Business and the System.
Franchisee must live year-round and full time in the Designated Territory.
If more than one (1) individual has executed this Agreement as Franchisee, Franchisee must designate one (1) individual who will devote his or her full time and will be directly involved in the operation of the Franchised Business.
Franchisee will always faithfully, honestly, and diligently perform Franchisee's obligations under this Agreement and will not engage in any business or other activities that will conflict with Franchisee's obligations under this Agreement
- 7.11.1 If the Franchised Business is in the top twenty-five percent (25%) of the System in terms of Annual Revenue Per Capita Growth or a similar metric established from time to time by CITY WIDE, Franchisee may designate a trained and competent employee to be a full-time manager ("Manager") to run the day-to-day operations of the Franchised Business with Franchisee providing its continued support to the Manager, subject to CITY WIDE'S sole and absolute discretion and the conditions set forth below.
Where the Franchised Business is the first CITY WIDE business in the Designated Territory or surrounding area, the option of appointing a Manager is not available.
The Franchisee must directly operate and manage the Franchised Business.
Where a Franchisee is wishing to designate a Manager, the following minimum conditions must be met:
(a) Manager must meet the then-criteria used by CITY WIDE for approving new franchisees.
(b) Manager must have the necessary experience in accordance with the Operating Manual to operate the Franchised Business.
(c) Manager must own at least a twenty percent (20%) interest in Franchised Business (if Franchisee is an entity, Manager must own twenty percent (20%) of the entity that owns the Franchised Business); provided however, that CITY WIDE may agree to an alternative arrangement (other than direct ownership by the Manager) in exceptional circumstances.
(d) Manager must live in the Designated Territory and must devote fulltime, year round and best efforts to supervising the operation of the Franchised Business on a daily basis.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee must live year-round and full-time in their designated territory. This requirement ensures that the franchisee is actively involved in the day-to-day management and oversight of the business.
This residency requirement is fairly common in franchise systems, especially those that rely heavily on local networking and community involvement. By living in the designated territory, the City Wide franchisee can better understand the local market, build relationships with customers, and respond quickly to any issues that may arise.
However, there is an exception to this rule. If the Franchised Business is in the top twenty-five percent (25%) of the System in terms of Annual Revenue Per Capita Growth, the franchisee may designate a trained and competent employee to be a full-time manager to run the day-to-day operations of the Franchised Business with Franchisee providing its continued support to the Manager. The manager must live in the Designated Territory and must devote fulltime, year round and best efforts to supervising the operation of the Franchised Business on a daily basis. This exception is not available if the Franchised Business is the first City Wide business in the Designated Territory or surrounding area.
This exception provides some flexibility for successful franchisees who may wish to delegate the day-to-day operations to a manager while still maintaining ownership and oversight of the business. However, it's important to note that the manager must also meet certain criteria, including having the necessary experience and owning at least a twenty percent (20%) interest in the business.