Can a City Wide franchisee sell services outside of their Designated Territory?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
You may solicit or accept orders from consumers outside of your Designated Territory, in contiguous areas to the Designated Territory, provided that such order is not within the Designated Territory of another franchisee or affiliate-owned location. If you accept orders outside of your Designated Territory in a contiguous area, and the area subsequently becomes the Designated Territory of another franchisee or affiliate-owned location, the new franchisee has exclusive rights to any orders/consumers sold outside of your Designated Territory. At the new franchisee's discretion, the new franchisee has up to 12 months from its opening date to determine if it wants the order/consumer to be transferred to the new franchisee and service the consumer or allow you to service the consumer. Refer to the Operating Manual for the specific account transfer details. If the consumer is being transferred to the new franchisee, you must comply and support the consumer account transfer, ensuring you are providing best efforts to minimize loss of business.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 44)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee can solicit or accept orders from consumers outside their Designated Territory, specifically in areas contiguous to their territory. However, this is conditional: the order must not fall within another franchisee's or an affiliate-owned location's Designated Territory.
If a franchisee does accept orders from an area contiguous to their territory and that area subsequently becomes part of another franchisee's or affiliate-owned location's territory, the new franchisee has certain rights. The new franchisee can decide, within 12 months of their opening date, whether to have the order/consumer transferred to them or allow the original franchisee to continue servicing the consumer. The original franchisee is obligated to support the consumer account transfer to minimize any business loss if the new franchisee chooses to take over the account.
City Wide also retains the right to sell services, products, materials, and related equipment authorized for a franchisee's business under other trademarks, service marks, and commercial symbols through similar or dissimilar channels of distribution within and outside the franchisee's Designated Territory. They can also advertise and sell services associated with the franchised business under the City Wide marks through dissimilar channels of distribution, including electronic means like the Internet and websites, both within and outside the Designated Territory.