Does the City Wide franchisee warrant that they have not assigned any of the released matters to a third party?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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- No Assignment. Franchisee represents and warrants to CITY WIDE that it has not assigned, transferred, or conveyed to any third party all or any part of or partial or contingent interest in any of the released matters which are called for to be released by this Release now or in the future, that it is aware of no third party who contends or claims otherwise, and that it shall not after this time purport to assign, transfer, or convey any such claim.
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- Choice of Law. This Release shall be construed in accordance with and all disputes hereunder shall be governed by the laws of the State of Kansas. If any legal action is necessary to enforce the terms and conditions of this Release, the parties hereby agree that any action sought to be brought by either party, shall be brought in the appropriate state or federal court covering Johnson County, Kansas with jurisdiction over the matter.
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have duly executed this Release in multiple copies the day and year first above written.
ATTEST: CITY WIDE FRANCHISE COMPANY, INC. ATTEST/WITNESS: **
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the franchisee must warrant to City Wide that they have not assigned, transferred, or conveyed to any third party any part of the released matters. This includes any partial or contingent interest in these matters, both now and in the future. The franchisee must also confirm they are not aware of any third party claiming otherwise and agree not to assign, transfer, or convey any such claim in the future. This requirement is part of a release agreement between the franchisee and City Wide.
This provision protects City Wide by ensuring that the franchisee is the sole party releasing claims and that no other entity can later assert rights related to those released matters. It prevents potential complications or legal challenges from third parties who might claim an interest in the released claims. The franchisee's warranty provides City Wide with assurance and recourse if the franchisee has, in fact, assigned such rights.
The release agreement also specifies that it is governed by the laws of Kansas and any legal action related to the release must be brought in a court covering Johnson County, Kansas. However, the document explicitly states that the release does not waive any liability City Wide may have under the Washington Franchise Investment Protection Act. This ensures that franchisees in Washington retain their rights under that specific law, regardless of the general release.
Prospective franchisees should carefully review this section of the Franchise Disclosure Document and consult with legal counsel to fully understand the implications of this release and warranty. It is crucial to be certain that no third party has any claim or interest in the matters being released before signing the agreement. Franchisees should also be aware of the specific legal jurisdiction and the exception for Washington franchisees.