Does City Wide grant the franchise in reliance on the franchisee's business skill and financial capacity?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
CITY WIDE has developed the System through the expenditure of time, money, and effort and has maintained high standards of quality and service for the System, because of which the System has acquired valuable goodwill and a favorable reputation; and
CITY WIDE has and continues to develop, use, protect, and control the Marks for the benefit and exclusive use of itself and its franchisees to identify for the public the source of the products and/or services marketed under the System and to represent the System's high standards of quality; and
Franchisee desires to operate and has applied for a franchise to operate a business or facility according to the CITY WIDE System and using the Marks, and CITY WIDE has approved Franchisee's application in reliance upon all of representations made in Franchisee's application; and
Franchisee desires, upon the terms and conditions contained in this Agreement, to enjoy the benefits of operating under the System and of using the Marks and to be licensed to conduct the Franchised Business in strict accordance with the standards and specifications of the System; and
Franchisee acknowledges that it is essential to the maintenance of the high standards of the System, and to the preservation of the integrity of the System, Marks, and goodwill of CITY WIDE, that each franchisee in the System maintain and adhere to certain uniform standards, procedures and policies described in this Agreement, and operate the Franchised Business in strict conformity with the CITY WIDE standards and specifications; and
CITY WIDE is willing to grant Franchisee a license under the System and the Marks to operate a Franchised Business, subject to Franchisee's strict compliance with the terms and conditions of this Agreement; and
CITY WIDE expressly disclaims the making of, and Franchisee acknowledges that Franchisee has not received nor relied upon, any warranty or guaranty, express or implied, as to: (a) the validity, exclusive ownership or enforceability of any Mark; (b) the validity or enforceability of any copyright, patent, or trade secret.
In consideration of the mutual covenants and agreements contained in this Agreement and for other good and valuable consideration, the receipt of which is acknowledged, the parties to this Agreement agree as follows:
The Recitals stated above are incorporated herein by reference into this Agreement.
SECTION 1. Grant of Franchise
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, City Wide approves a franchisee's application based on the representations made within it. City Wide acknowledges that the franchisee desires to operate and has applied for a franchise to operate a business according to the City Wide system and using their marks.
City Wide grants the franchise based on the franchisee's desire to enjoy the benefits of operating under the City Wide system and using the marks, and to be licensed to conduct the franchised business in strict accordance with the standards and specifications of the system. The franchisee must also maintain and adhere to certain uniform standards, procedures, and policies described in the agreement, and operate the franchised business in strict conformity with City Wide standards and specifications.
Furthermore, initial training will not begin until the franchisee has obtained financing or shown sufficient assets to satisfy City Wide of the franchisee's ability to meet its financial obligations under the agreement. This indicates that City Wide assesses the franchisee's financial capacity as part of the approval process. City Wide may also terminate the agreement if the franchisee, their salespersons, or designees are unable to satisfactorily complete the initial training program.