Is a City Wide franchisee responsible for obtaining all permits, certificates, and licenses required for operating the franchised business?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
y-to-day responsibilities of operating the Franchised Business unless or until a replacement Manager is appointed, in accordance to and subject to terms of this Agreement and the Operating Manual.
- 7.11.2 CITY WIDE's approval of the Manager may be withdrawn if Franchisee is in default of this Agreement.
- 7.11.3 From time to time, CITY WIDE may modify the criteria outlined herein and in the Operating Manual to establish new criteria as it relates to the appointment of the Manager.
- 7.12 Full Compliance. Franchisee will secure and maintain in force all required licenses, permits and certificates relating to the operation of the Franchised Business and will operate the Franchised Business in full compliance with all applicable ordinances and regulations, including without limitation, all government laws and regulations relating to occupational hazards and health, EEOC laws, Americans with Disabilities Act, copyright laws protecting owners of musical works, consumer protection, trade regulations, workers compensation, unemployment insurance and withholding, and payment of federal and state income taxes, social security taxes and sales, use and property taxes. Franchisee will furnish CITY WIDE within one hundred twenty (120) days after the receipt of equipment, a copy of a receipt for the payment of all use taxes, personal property taxes, and like taxes or assessments, applicable thereto.
- 7.13 High Moral and Ethical Standard. Franchisee will maintain a high moral and ethical standard in the operation and conduct of the Franchised Business so as to create and maintain goodwill among the public for the Marks and supervise and evaluate the performance of Franchisee's professional and other staff to ensure that each renders competent, efficient and quality service.
- 7.14 Completion of Training. Franchisee agrees that Franchisee and two other persons Franchisee designates will satisfactorily complete all mandatory training programs required by CITY WIDE, including but not limited to the initial training referred to in Section 4.1 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees are responsible for securing and maintaining all necessary licenses, permits, and certificates required to operate their franchised business. This includes adhering to all applicable ordinances and regulations. Franchisees must operate in full compliance with government laws related to occupational hazards and health, EEOC laws, the Americans with Disabilities Act, copyright laws, consumer protection, trade regulations, workers' compensation, unemployment insurance, and the payment of federal and state income taxes, social security taxes, and sales, use, and property taxes.
Within fourteen calendar days after the execution and acceptance of the franchise agreement, franchisees must apply to all appropriate government authorities for the permits, licenses, and approvals needed to operate their City Wide franchise within their designated territory. These may include a general contractor's license. Before commencing operations, franchisees must furnish City Wide with copies of all required permits and certifications, along with building inspection reports and certifications from governmental authorities, demonstrating that all necessary permits have been obtained and operational requirements have been met.
Furthermore, franchisees are required to furnish City Wide with a copy of the receipt for the payment of all use taxes, personal property taxes, and similar taxes or assessments applicable to equipment within 120 days after receiving the equipment. Failure to comply with these requirements could lead to a breach of the franchise agreement. This is a fairly standard practice in franchising, as franchisees are generally considered independent business owners responsible for their own compliance with local, state, and federal regulations.