What happens to a City Wide franchise if the franchisee dies or becomes disabled?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| reasonable attorneys' | |||
| fees, incurred by CITY | |||
| WIDE subsequent to termination or expiration in | |||
| connection with obtaining injunctive or other relief | |||
| under the Franchise Agreement; provide all signage | |||
| to CITY WIDE; and take further action as may be | |||
| required by the Operating | |||
| Manual or reasonably | |||
| requested by CITY WIDE; and, if due to your | |||
| default, forfeit any royalty rebate. | |||
| j. | Assignment of contract by | Section 13 | No restriction on CITY WIDE's |
| Franchisor | right to assign. | ||
| k. | "Transfer" by you – definition | Section 13 | Includes transfer of contract or assets or change in ownership. |
| l. | Franchisor's approval of transfer by you | Section 13 | CITY WIDE has the right to approve all transfers, but will not unreasonably withhold approval. |
| m. | Conditions for Franchisor's approval of transfer | Section 13 | You must ask CITYWIDE at least 60 days before to approve a transfer; you must pay a Transfer Fee equal to $25,000 and pay any applicable third-party broker fee; you must be in compliance with the Franchise Agreement and Operating Manual; transferee must meet CITY WIDE's standards, agree to make required upgrades, sign the current form of franchise agreement, and pay all required fees (including Initial Fees). |
| n. | Franchisor's right of first refusal to acquire your business | Section 20 | If you propose to sell the Franchised Business, its assets or part of the ownership of Franchisee, CITY WIDE will have a right of first refusal for 60 days to purchase for the price, terms and conditions offered to you (except CITY WIDE may substitute cash for payment terms). |
| o. | Franchisor's option to purchase your business | Section 20 | When the Agreement terminates or expires, CITY WIDE will have an option, but not an obligation, to purchase from you any assets of the Franchised Business and any materials containing the Marks at the lower of fair market value or your cost; CITY WIDE must notify you within 60 days after the termination or expiration. CITY WIDE shall have up to six months to pay the entirety of the agreed upon purchase price. |
| p. | Your death or disability | Sections 13 & 21 | Survivor or estate may continue to operate if it |
| meets CITY WIDE | |||
| standards, completes training, | |||
| and signs an agreement that the survivor or estate | |||
| agrees to be bound by the Franchise Agreement; | |||
| Survivor will have up to 60 days | |||
| to elect to acquire | |||
| or retain such interest (subject to CITY WIDE's | |||
| approval). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–47)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, specifically Item 17, in the event of the franchisee's death or disability, the survivor or estate has the option to continue operating the franchise under certain conditions. To do so, the survivor or estate must meet City Wide's standards, complete the required training, and sign an agreement to be bound by the existing Franchise Agreement. The survivor has 60 days to decide whether to acquire or retain interest in the franchise, subject to City Wide's approval.
If the survivor chooses not to acquire or retain interest in the City Wide franchise, they have six months to transfer the franchise to a City Wide-approved transferee. During this six-month period, the survivor must continue to fulfill all the franchisee's duties as outlined in the Franchise Agreement. This six-month period may be extended by up to 60 days to accommodate City Wide's right of first refusal, should City Wide decide to purchase the franchise.
Failure to properly transfer the City Wide franchise within the specified timeframe constitutes a material breach of the Franchise Agreement. This provision ensures business continuity while also protecting City Wide's interests by maintaining brand standards and operational consistency even after the franchisee's death or disability. It is important for prospective franchisees to understand these terms and consider them in their estate planning.