For City Wide franchisees in Maryland, what is the required notification timeframe, in writing, before the Franchise Agreement expires to request a Successor Term?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
The first sentence of the "Summary" section of ITEM 17(c) of the Franchise Agreement chart entitled Requirements for You to Renew or Extend is deleted in its entirety and the following is substituted in its place.
"You must be in good standing, including compliance with the Annual Revenue Per Capita Growth or capture Market Share requirement; notify CITY WIDE in writing 12 months before the Franchise Agreement expires that you want a Successor Term; perform all required maintenance, refurbishing, renovating, remodeling, and equipment upgrades at your expense; sign CITY WIDE's then-current form of Franchise Agreement, which may differ from the terms of the Franchise Agreement; pay a successor fee of 50% of your Initial Franchise Fee; sign a mutual release of all claims you may have against CITY WIDE (CITY WIDE will mutually release you), except for claims arising under the Maryland Franchise Registration and Disclosure Law; and a general release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law; and provide proof to CITY WIDE that you have the right to remain at your Location."
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees in Maryland must provide written notice to City Wide 12 months before the Franchise Agreement expires if they wish to obtain a Successor Term. This notification is a prerequisite for being granted a successor franchise term.
In addition to providing timely written notice, Maryland franchisees must also be in good standing with City Wide, which includes compliance with the Annual Revenue Per Capita Growth or capture Market Share requirement. They are also responsible for performing all required maintenance, refurbishing, renovating, remodeling, and equipment upgrades at their own expense. Furthermore, franchisees must sign City Wide's then-current form of Franchise Agreement, which may differ from the terms of the original agreement, and pay a successor fee equal to 50% of the initial franchise fee.
Maryland franchisees must also sign a mutual release of all claims against City Wide, although this release does not extend to claims arising under the Maryland Franchise Registration and Disclosure Law. Finally, they must provide proof to City Wide that they have the right to remain at their current location. Meeting all these conditions is essential for a City Wide franchisee in Maryland to secure a Successor Term.