factual

What is a City Wide franchisee required to do in any litigation relating to the Marks undertaken by City Wide?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

In any defense or prosecution of any litigation relating to the Marks or components of the System undertaken by CITY WIDE, Franchisee will cooperate with CITY WIDE and execute any documents and take all actions as may be desirable or necessary in the opinion of CITY WIDE's counsel, to conduct such defense or prosecution.

Both parties will make every effort consistent with the foregoing to protect, maintain, and promote the Marks as identifying the System.

CITY WIDE MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE USE, EXCLUSIVE OWNERSHIP, VALIDITY OR ENFORCEABILITY OF THE MARKS.

Source: Item 22 — CONTRACTS (FDD page 65)

What This Means (2025 FDD)

According to City Wide's 2025 Franchise Disclosure Document, if City Wide undertakes any litigation relating to its Marks or components of its System, the franchisee is required to cooperate with City Wide. This cooperation includes executing documents and taking actions deemed desirable or necessary by City Wide's counsel to conduct the defense or prosecution.

This means that a City Wide franchisee must actively assist City Wide in legal matters concerning the brand's trademarks and overall system. This assistance could involve providing information, signing legal documents, or participating in legal proceedings as directed by City Wide's legal team. The franchisee does not have control over the litigation but must comply with City Wide's requests to support their legal strategy.

The FDD emphasizes that both parties should make every effort to protect, maintain, and promote the Marks as identifying the System. However, City Wide makes no guarantees regarding the use, exclusive ownership, validity, or enforceability of the Marks. This places the responsibility on the franchisee to comply with City Wide's directions in trademark-related legal matters, even without any assurance from City Wide about the strength of their legal position.

This requirement is fairly standard in franchising, as franchisors typically retain control over brand-related legal matters to ensure consistency and protect the overall brand identity. However, it's important for a prospective City Wide franchisee to understand the extent of their required cooperation and potential implications, such as time commitment and potential legal costs, even though City Wide has the sole right to defend any action.

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.