Is a City Wide franchisee required to personally oversee the day-to-day operations of the Franchised Business?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to personally oversee the day-to-day operations of the Franchised Business and must reside full-time, year-round, within the Designated Territory. If the Franchisee wishes to appoint a full-time Manager ("Manager") to handle daily operations at a specific location, you must first obtain approval from CITY WIDE. The Manager must be a trained and competent employee, possess the necessary experience to operate the Franchised Business in accordance with the Operating Manual, and reside full-time, yearround within the Designated Territory. Additionally, the Manager must hold at least a 20% ownership interest in the Franchisee and meet the current qualifications CITY WIDE requires for new franchisees. If a Manager is appointed, you are expected to fully support them in their role. CITY WIDE reserves the right to request proof of residency for you or your Manager, as well as documentation verifying the Manager's ownership interest. The Manager must sign the Guaranty and Assumption of Obligations, the Confidentiality Agreement, and the Non-Compete Agreement, attached hereto as Attachments A, E, and F respectively. CITY WIDE's approval of the Manager may be withdrawn if Franchisee is in default of the Franchise Agreement. From time to time, CITY WIDE may modify the criteria outlined herein and establish new criteria as it relates to the appointment of the Manager.
You must comply with CITY WIDE's staffing requirements which are detailed in the Operating Manual. Your failure to comply with these requirements will constitute a material breach of the Franchise Agreement and will permit CITY WIDE to terminate the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 43)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees are generally required to personally oversee the day-to-day operations of their franchised business and must reside full-time, year-round, within their designated territory. This indicates that City Wide expects franchisees to be actively involved in their business, ensuring consistent application of the City Wide system and standards. This requirement helps maintain quality control and customer satisfaction, which are crucial for the brand's reputation.
However, City Wide does provide an exception to this rule. A franchisee can appoint a full-time manager to handle the daily operations, but only with prior approval from City Wide. The manager must be a trained and competent employee with the necessary experience to operate the business according to City Wide's operating manual. The manager must also reside full-time, year-round, within the designated territory and hold at least a 20% ownership interest in the franchise.
Even with a manager in place, the franchisee is expected to fully support the manager in their role. City Wide retains the right to request proof of residency for both the franchisee and the manager, as well as documentation verifying the manager's ownership interest. The manager must also sign agreements related to guaranty and assumption of obligations, confidentiality, and non-competition. City Wide may withdraw approval of the manager if the franchisee defaults on the franchise agreement.
Furthermore, City Wide may modify the criteria for appointing a manager and establish new criteria from time to time. This flexibility allows City Wide to adapt its requirements based on the evolving needs of the franchise system. Franchisees must also comply with City Wide's staffing requirements as detailed in the operating manual, and failure to do so constitutes a material breach of the franchise agreement.