Is a City Wide franchisee required to maintain a general contractor's license?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
payment and performance of each and every undertaking, fee, agreement, duty, and covenant of Franchisee set forth in this Agreement, which guaranty must be executed by the principals, owners, directors, or stockholders of Franchisee, as the case may be, or by such other persons or entities as CITY WIDE may require. Additionally, spouses or domestic partners of principals, owners or stockholders will be required to provide a conditional guaranty of payment in the form attached to this Agreement as Attachment A-2.
- 12.3 Franchisee covenants that Franchisee has applied for, secured, and agrees to always maintain during the Term of this Agreement a general contractor's license, if required by state or local law, and any other permits, licenses, and/or approvals which may be required to operate Franchisee's Franchised Business within the Designated Territory.
- 12.4 Each of the foregoing covenants and the covenants of the Non-Compete Agreement will be construed as independent of any other covenant or provision of this Agreement. Franchisee and all guarantors expressly agree that the existence of any claim they may have against CITY WIDE, whether arising from this Agreement, will not constitute a defense to the enforcement by CITY WIDE of the covenants in this Section.
- 12.5 CITY WIDE has the right to require Franchisee to execute similar covenants, in a form satisfactory to CITY WIDE, with all of Franchisee's personnel who perform managerial or supervisory functions and all personnel who receive training from CITY WIDE.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee is required to secure and maintain a general contractor's license if mandated by state or local law. Specifically, the franchisee must apply for and secure all necessary permits, licenses, and approvals to operate their City Wide franchise within their designated territory. These permits, licenses, and approvals may include a general contractor's license.
Within fourteen calendar days after the execution and acceptance of the Franchise Agreement, the franchisee must apply to all appropriate government authorities for the permits, licenses, and/or approvals which may be required to operate the Franchised Business. Before commencing operation, the franchisee must furnish City Wide with copies of all required permits and certifications for lawful operation, along with building inspection reports and certifications from governmental authorities, demonstrating that all necessary permits have been obtained and operational requirements have been met.
This requirement ensures that City Wide franchisees operate in compliance with local regulations, which can vary significantly by location. It is the franchisee's responsibility to understand and adhere to these legal requirements, including maintaining the necessary licenses throughout the term of the franchise agreement. Failure to comply with these requirements could lead to a breach of the agreement and potential termination of the franchise.