What geographic areas are covered by the non-compete agreement for City Wide franchisees after termination or expiration of the Franchise Agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Accordingly, Franchisee covenants that, except as otherwise approved in writing by CITY WIDE, Franchisee will not, for a period of two (2) years after the expiration or termination of this Agreement, regardless of the cause of termination, either directly or indirectly, for himself, or through, on behalf of, or in conjunction with any person, persons, partnership, or corporation, own, maintain, engage in, consult with or have any interest in any business specializing, in whole or in part, in providing the same or similar services or products or activities of any type or nature, targeted at a market of a type the same as or similar to the type of programs offered or provided or markets targeted in or by the System:
- a.
Within a radius of 150 miles of Franchisee's Franchised Business Location.
- b.
Within the metropolitan statistical area where Franchisee's Franchised Business is located; or
- c.
Within a radius of 150 miles of the Location of any other business using the System, whether franchised or owned by CITY WIDE.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, after the franchise agreement expires or terminates, the franchisee is subject to a non-compete agreement that restricts their business activities within certain geographic areas. This restriction lasts for a period of two years, regardless of the reason for termination.
The non-compete agreement prevents the franchisee from owning, maintaining, engaging in, consulting with, or having any interest in a business that offers similar services or products to those of the City Wide system. This restriction applies to businesses targeting the same type of market as City Wide. The geographic scope of this restriction includes:
- A 150-mile radius of the franchisee's original franchised business location.
- The metropolitan statistical area where the franchisee's franchised business is located.
- A 150-mile radius of any location using the City Wide system, whether franchised or owned by City Wide.
These restrictions are designed to protect City Wide's confidential information, client relationships, and market position. Franchisees should carefully consider these limitations before entering into an agreement, as they could significantly impact their ability to operate a similar business after leaving the City Wide franchise system.