When must a City Wide franchisee repay City Wide for repairs made on their behalf?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee will maintain the condition and appearance of the Office of the Franchised Business consistent with CITY WIDE standards, as set forth in the Operating Manual and otherwise in writing. Franchisee will maintain such premises as CITY WIDE may from time to time require to maintain or improve the appearance and efficient operation of the Franchised Business, including, but not limited to, replacement of worn out or obsolete fixtures and signs, and repair of the Location. If any time in CITY WIDE's judgment the general state of repair or the appearance of the premises of the Franchised Business or its equipment, fixtures, or signs does not meet CITY WIDE's standards, CITY WIDE will so notify Franchisee and specify the action Franchisee must take to correct such deficiency. If Franchisee fails or refuses to initiate within thirty (30) calendar days after receipt of such notice, and continues to fail to implement a bona fide program to complete any required maintenance, CITY WIDE will have the right, in addition to all other remedies, to enter upon the premises of the Franchised Business and effect such repairs, painting, maintenance or replacements of equipment, fixtures or signs on Franchisee's behalf and Franchisee will repay CITY WIDE the entire costs on demand. If Franchisee fails to make any such payments or remedy operational deficiencies, such failure will constitute a material breach of this Agreement and CITY WIDE may terminate this Agreement. Except for
those repairs that would constitute a public health or safety hazard, or are required by any governmental agency, any such remodeling requirement will be imposed only in a nondiscriminatory manner upon (i) all comparably situated CIT
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee must repay City Wide the entire costs of repairs on demand if City Wide deems the franchisee's premises, equipment, fixtures, or signs do not meet City Wide's standards, City Wide notifies the franchisee of the deficiency, and the franchisee fails or refuses to initiate a program to complete the required maintenance within 30 calendar days after receiving notice.
This means that City Wide has the right to ensure that all franchised locations maintain a consistent brand image and operational standard. If a franchisee neglects the upkeep of their business location, City Wide can step in to perform the necessary repairs or replacements.
The franchisee is then obligated to reimburse City Wide for these expenses. Failure to make these payments or remedy operational deficiencies constitutes a material breach of the franchise agreement, potentially leading to termination. However, remodeling requirements exceeding $25,000 will only be required if there is sufficient time remaining in the franchise term to amortize or depreciate the expenditure under the Internal Revenue Code. This condition does not apply to repairs that constitute a public health or safety hazard, or are required by any governmental agency.