When must a City Wide franchisee obtain all required licenses before opening their business?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
You must comply with all local, state and federal laws and regulations in operating your Franchised Business. CITY WIDE is not aware of any special laws covering the commercial janitorial business, but every municipal body or state may have local laws governing the right to do business in their locale. Certain services that your Franchised Business will provide are governed by state and local licensing laws. For example, the state in which you will operate your CITY WIDE franchise may require you to obtain a general contractor's license. You must obtain all such licenses before opening your business and performing such services, and you agree to maintain all such licenses at all times during the term and any successor term of the Franchise Agreement.
You will be solely responsible for ensuring that all of your employees, contractors and subcontractors, including any individuals providing services on your behalf, are legally authorized to work in the jurisdiction which your Franchised Business operates. You shall comply with all applicable immigration, employment and labor laws including but not limited to the verification of employment eligibility and citizenship status as required by law.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 10–12)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee must obtain all required licenses before opening their business and performing services. The FDD specifies that certain services offered by a City Wide franchise may be governed by state and local licensing laws. For instance, the state in which the franchisee operates may require a general contractor's license.
This requirement means that prospective City Wide franchisees need to research and understand the specific licensing requirements in their designated territory well in advance of launching their business. Failure to obtain the necessary licenses can result in legal penalties, delays in opening, and the inability to provide certain services.
Furthermore, the franchisee is obligated to maintain all required licenses throughout the term and any successor term of the Franchise Agreement. This ongoing responsibility highlights the importance of staying informed about changes in licensing laws and regulations and ensuring continuous compliance. This also extends to ensuring that all employees, contractors, and subcontractors are legally authorized to work in the jurisdiction where the City Wide franchise operates, complying with all applicable immigration, employment, and labor laws.