Can a City Wide franchisee sell their franchise without City Wide's prior written consent?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Assignment. City Wide may sell, transfer or assign this Agreement at any time and thereby be released from any further obligations to Franchisee. Franchisee may not sell, transfer or assign Franchisee's rights to this Agreement without the prior written consent of City Wide, which may be granted or denied.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee is not allowed to sell, transfer, or assign their rights to the Franchise Agreement without obtaining prior written consent from City Wide. This consent can be either granted or denied by City Wide. This provision gives City Wide control over who becomes a franchisee and ensures that new franchisees meet their standards.
This requirement is typical in franchising, as franchisors want to maintain brand consistency and protect their trademarks by ensuring that all franchisees are properly trained and qualified. Requiring consent allows City Wide to vet potential buyers and ensure they are a good fit for the system.
For a prospective City Wide franchisee, this means that if they decide to sell their franchise in the future, they will need to seek approval from City Wide. City Wide has the right to refuse the sale, which could impact the franchisee's ability to recoup their investment. It is important to understand the criteria City Wide uses to evaluate potential buyers and to maintain a good relationship with the franchisor to facilitate a smoother transfer process if the franchisee decides to sell.