Must a City Wide franchisee's operation of the Franchised Business be in compliance with the Operating Manual to be granted a Successor Term?

According to City Wide's 2025 Franchise Disclosure Document, a franchisee's operation of the Franchised Business must be in full compliance with the standards, specifications, requirements, and instructions set forth in the Operating Manual to be granted a Successor Term. This means that franchisees must adhere to the guidelines and procedures outlined in the Operating Manual to be eligible for renewal of their franchise agreement.

This requirement ensures that all City Wide franchises maintain a consistent level of quality and service, which is essential for preserving the brand's reputation and goodwill. The Operating Manual likely contains detailed instructions on various aspects of the business, including operational procedures, customer service standards, marketing strategies, and facility maintenance. Franchisees must familiarize themselves with the Operating Manual and ensure that their business operations align with its requirements.

Failure to comply with the Operating Manual could result in the denial of a Successor Term, which would mean the franchisee would not be able to renew their franchise agreement. This underscores the importance of adhering to City Wide's standards and policies to maintain the right to continue operating the franchise. Prospective franchisees should carefully review the Operating Manual and understand the obligations it imposes to ensure they can meet the requirements for renewal.