What is the franchisee prohibited from doing regarding assignment of released matters related to City Wide after signing the release?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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- No Assignment. Franchisee represents and warrants to CITY WIDE that it has not assigned, transferred, or conveyed to any third party all or any part of or partial or contingent interest in any of the released matters which are called for to be released by this Release now or in the future, that it is aware of no third party who contends or claims otherwise, and that it shall not after this time purport to assign, transfer, or convey any such claim.
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees are prohibited from assigning, transferring, or conveying any released matters to a third party after signing the release. This includes any partial or contingent interest in those released matters.
Specifically, the franchisee warrants to City Wide that they have not already assigned or transferred any rights related to the released matters. Furthermore, they confirm they are not aware of any third party claiming such rights. This ensures that City Wide is dealing directly with the franchisee and that no other parties can later claim rights related to the released claims.
This provision protects City Wide by preventing franchisees from selling or transferring their claims to a third party who might then pursue legal action against City Wide. It reinforces the intent of the release, which is to provide a clean break and avoid future disputes related to the released matters. Franchisees should fully understand the implications of this clause before signing the release, as it restricts their ability to deal with these specific claims in the future.