Must a City Wide franchisee reside full-time, year-round, within the Designated Territory?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must live year-round and full time in the Designated Territory.
If more than one (1) individual has executed this Agreement as Franchisee, Franchisee must designate one (1) individual who will devote his or her full time and will be directly involved in the operation of the Franchised Business.
- 7.11.1 If the Franchised Business is in the top twenty-five percent (25%) of the System in terms of Annual Revenue Per Capita Growth or a similar metric established from time to time by CITY WIDE, Franchisee may designate a trained and competent employee to be a full-time manager ("Manager") to run the day-to-day operations of the Franchised Business with Franchisee providing its continued support to the Manager, subject to CITY WIDE'S sole and absolute discretion and the conditions set forth below.
Where the Franchised Business is the first CITY WIDE business in the Designated Territory or surrounding area, the option of appointing a Manager is not available.
- (d) Manager must live in the Designated Territory and must devote fulltime, year round and best efforts to supervising the operation of the Franchised Business on a daily basis.
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, a franchisee is generally required to live full-time, year-round, within their designated territory. This requirement ensures that the franchisee is actively engaged in the day-to-day management and oversight of the franchised business, with the aim of boosting business and enhancing the overall value of both the franchise and the City Wide system.
However, there is an exception to this residency requirement. If a City Wide franchise ranks in the top 25% of the system in terms of Annual Revenue Per Capita Growth, the franchisee may be able to designate a full-time manager to handle the daily operations. This manager must be a trained and competent employee who meets City Wide's criteria for new franchisees, possesses the necessary experience, and owns at least a 20% interest in the franchise. Importantly, the designated manager must also live in the Designated Territory and devote their full-time efforts to supervising the business.
City Wide retains the right to request proof of residency from either the franchisee or the appointed manager, as well as documentation verifying the manager's ownership stake. This flexibility allows successful franchisees to potentially delegate day-to-day operations while still maintaining overall responsibility and support for the business. However, this option is not available if the franchise is the first City Wide business in the Designated Territory or surrounding area.