What is a City Wide franchisee required to do if there is a claim under any insurance policy?

According to City Wide's 2025 Franchise Disclosure Document, a franchisee must promptly notify City Wide of any actual, potential, or threatened claim under any insurance policy. Furthermore, the franchisee must allow City Wide, at its sole discretion, to assume the defense of any such claim. This requirement is part of the broader insurance obligations that City Wide franchisees must adhere to throughout the term of their agreement.

This notification requirement ensures that City Wide is aware of any potential liabilities or issues that may arise from the franchisee's operations. By retaining the right to assume the defense of any claim, City Wide maintains control over the legal strategy and management of the situation, which can be crucial for protecting the brand's reputation and minimizing potential financial losses. This also allows City Wide to ensure consistent handling of claims across its franchise network.

For a prospective franchisee, this means being prepared to immediately inform City Wide of any incident that could lead to an insurance claim. It also means relinquishing control over the handling of the claim to City Wide if the franchisor chooses to take over the defense. While this may seem restrictive, it aligns with the franchisor's interest in protecting the overall brand and ensuring consistent legal representation. Franchisees should factor this requirement into their operational procedures and be prepared to cooperate fully with City Wide in the event of a claim.