Can a City Wide franchisee transfer their interest at terms more favorable than those offered to City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.4.5 If CITY WIDE approves the proposed transferee, Franchisee, the Affiliated Company, or the Owner may transfer the interest to the proposed transferee pursuant to a form of transfer or assignment approved in advance by CITY WIDE at a price and under terms and conditions which are not more favorable than the terms offered to CITY WIDE, but only after the proposed transferee has completed (to the satisfaction of CITY WIDE) the initial training then currently required of System franchisees and has paid CITY WIDE all fees associated with such training, as assessed by CITY WIDE at its sole and absolute right;
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 transfer their interest under terms more favorable than those offered to City Wide. Specifically, if a franchisee, affiliated company, or owner wishes to transfer their interest to another party, City Wide has the option to purchase that interest by matching the monetary purchase price and payment schedule.
If City Wide chooses not to exercise this option, the franchisee must obtain written approval from City Wide for the prospective transferee. The transfer can only occur under terms and conditions that are no more favorable than those initially offered to City Wide. The prospective transferee must also meet City Wide's training requirements and pay any associated fees.
Prior to the completion of any transfer, the franchisee is responsible for paying all outstanding amounts owed to City Wide and resolving any breaches of the franchise agreement. The franchisee must also provide City Wide with a general release of any claims against the company. These conditions ensure that City Wide maintains control over who becomes a franchisee and that the terms of the transfer are fair to the franchisor.