factual

What is a City Wide franchisee permitted to retain after termination of the franchise agreement, despite the requirement to destroy confidential information?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 15.2.3 Cease to use and destroy all tangible copies of the Operating Manual, the Software, and all other Confidential Information together with all equipment and other property owned by CITY WIDE.

Franchisee will retain no copy or record of any of the foregoing; provided, however, that Franchisee may retain Franchisee's copy of this Agreement, a copy of any correspondence between the parties, and a copy of any other document which Franchisee needs for compliance with any applicable provision of law.

Source: Item 22 — CONTRACTS (FDD page 65)

What This Means (2025 FDD)

According to City Wide's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, franchisees are generally required to cease using and destroy all tangible copies of the Operating Manual, the Software, and all other Confidential Information, along with any equipment or property owned by City Wide. This broad requirement aims to protect City Wide's proprietary information and maintain the integrity of the franchise system.

However, there are specific exceptions to this strict destruction policy. A franchisee is permitted to retain their personal copy of the Franchise Agreement itself. Additionally, they can keep copies of any correspondence exchanged between the franchisee and City Wide during the term of the agreement. Finally, franchisees are allowed to retain any documents that they may need to maintain in order to comply with any applicable laws or regulations.

These exceptions acknowledge the franchisee's need to maintain records for legal and administrative purposes, even after the franchise relationship has ended. It is important for prospective franchisees to understand these post-termination obligations and permitted exceptions, as failure to comply with the destruction requirements could result in legal action by City Wide.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.