What is a City Wide franchisee's obligation in the event of litigation relating to the City Wide Marks undertaken by City Wide?

According to the 2025 City Wide Franchise Disclosure Document, if City Wide undertakes litigation related to its Marks or components of its System, the franchisee is obligated to cooperate with City Wide. This cooperation includes executing documents and taking actions deemed desirable or necessary by City Wide's counsel to conduct the defense or prosecution.

This means that a City Wide franchisee must actively assist City Wide in any legal proceedings concerning the brand's trademarks or overall system. This assistance could involve providing information, signing legal documents, or participating in other activities as directed by City Wide's legal team. The franchisee does not have control over the litigation but must support City Wide's efforts.

The FDD also states that both City Wide and the franchisee are expected to make every effort to protect, maintain, and promote the Marks as identifying the System. This shared responsibility highlights the importance of brand integrity and the franchisee's role in upholding it. However, City Wide makes no representation or warranty regarding the use, exclusive ownership, validity, or enforceability of the Marks.

This clause ensures that City Wide can effectively defend and protect its brand identity, while also requiring franchisees to actively participate in these efforts. Franchisees should be prepared to allocate time and resources to fulfill these obligations should litigation arise. Franchisees should seek clarification from City Wide regarding the specific types of cooperation that may be required and the potential costs associated with such cooperation.