Can City Wide franchisees sell services under a different brand name?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will not use any of the Marks or portion of any of the Marks as part of any corporate or trade name, or with any prefix, suffix, or other modifying words, terms, designs, or symbols, or in any modified form.
Franchisee will not use any Mark in connection with the sale of any unauthorized product or service or in any other manner CITY WIDE has not expressly authorized in writing.
- 5.10 Franchisee further agrees and covenants to operate and advertise only under the name or names from time to time designated by CITY WIDE for use by similar System franchisees; to adopt and use the Marks in the manner prescribed by CITY WIDE at its sole and absolute right; to refrain from using the Marks to perform any activity or to incur any obligation or indebtedness in such a manner as may, in any way, subject CITY WIDE to liability; to observe all laws with respect to the registration of trade names and assumed or fictitious names, to include in any application for such names a statement that Franchisee's use of the Marks is limited by the terms of this Agreement, and to provide CITY WIDE with a copy of any such application and other registration document(s); to observe such requirements with respect to trademark and service mark registrations and copyright notices as Franchisee may, from time to time, require, including, without limitation, affixing "SM," "TM," or "R" in a circle adjacent to all such Marks in any and all uses thereof; and, to utilize such other appropriate notice of ownership, registration, and copyright as CITY WIDE may require.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 44)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees are generally prohibited from using any marks not expressly authorized by City Wide in writing. Specifically, franchisees cannot use any of City Wide's marks or portions thereof as part of any corporate or trade name, or with any modifications, without explicit permission. Franchisees are required to operate and advertise only under the names designated by City Wide for similar franchisees and must use the marks in the manner prescribed by City Wide.
City Wide franchisees are granted the right to operate a franchised business using the City Wide system, software, and marks within their designated territory. This license is exclusive, meaning that as long as the agreement is in effect and the franchisee is not in default, they have the sole right to operate a City Wide business in that territory. However, this exclusivity is limited to the City Wide brand; City Wide reserves the right to establish or license other businesses under different systems and marks, even within a franchisee's designated territory.
City Wide retains significant control over the use of its marks, including the right to modify or discontinue their use and to require franchisees to use additional or substitute trade names. Franchisees must comply with City Wide's directions regarding the marks, and City Wide bears no liability for any modifications or discontinuations. This control extends to advertising and promotion, where franchisees must adhere to City Wide's guidelines and obtain prior written consent before establishing an internet presence for their franchised business.
While franchisees must adhere to City Wide's branding and operational standards, City Wide reserves the right to engage in activities that might seem competitive, such as selling similar services under different trademarks or acquiring businesses that compete with City Wide franchises. This highlights the importance of understanding the scope of the franchise agreement and the potential for City Wide to diversify its offerings through other channels.