What franchisee qualifications must a proposed transferee meet for City Wide to approve a transfer?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee, an Affiliated Company or an Owner desire to make a Transfer to a person or entity other than as described in Section 13.3 or 13.6, such person or entity must comply with the following terms, conditions, and procedures to effectuate a valid Transfer:
13.4.1 Franchisee will first notify CITY WIDE in writing of the proposed Transfer with a complete description of all terms of the proposed Transfer, including the prospective transferee's name, address, financial qualifications, and previous five (5) years' business experience.
13.4.2 The proposed transferee will then apply for a Franchised Business under the System and must meet all of CITY WIDE's then-current standards and requirements for becoming a franchisee.
13.4.3 CITY WIDE may, within sixty (60) days after receipt of such notice or application, whichever is later, exercise the right to purchase the interest being offered by Franchisee, an Affiliated Company, or any Owner ("Option") by matching the monetary purchase price and payment schedule terms (without having to match any other non-monetary terms) of the proposed Transfer.
In the event all or any part of the consideration offered to Franchisee, the Affiliated Company or Owner for such
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a proposed transferee must meet several qualifications to be approved. The franchisee must first notify City Wide in writing of the proposed transfer, including the prospective transferee's name, address, financial qualifications, and previous five years of business experience. The proposed transferee must then apply for a City Wide franchise and meet all of City Wide's then-current standards and requirements for becoming a franchisee.
City Wide retains the right to purchase the interest being offered by the franchisee by matching the monetary purchase price and payment schedule terms of the proposed transfer. If City Wide does not exercise this option, they will notify the franchisee of their approval or disapproval of the prospective transferee. If City Wide approves the proposed transferee, the transfer can proceed once the transferee completes the initial training required of new franchisees and pays all associated fees.
Prior to the transfer, the franchisee must pay all amounts due to City Wide, resolve any breaches of the franchise agreement, and provide a general release of claims against City Wide. The transferee will also need to execute the then-current form of the franchise agreement, pay all required fees, including initial fees, and provide any additional guarantees of their obligations under the franchise agreement that City Wide may require. City Wide may also require the transferee to guarantee the obligations of the franchisee under the agreement.