What happens to the City Wide franchisee's access to the software after termination of the agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2.3 Cease to use and destroy all tangible copies of the Operating Manual, the Software, and all other Confidential Information together with all equipment and other property owned by CITY WIDE.
Franchisee will retain no copy or record of any of the foregoing; provided, however, that Franchisee may retain Franchisee's copy of this Agreement, a copy of any correspondence between the parties, and a copy of any other document which Franchisee needs for compliance with any applicable provision of law.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee must cease using the Software. Specifically, the franchisee is required to destroy all tangible copies of the Software. The franchisee is not allowed to retain any copies or records of the Software, except for specific documents needed for legal compliance, such as the Franchise Agreement itself and correspondence between the parties.
This obligation is part of the broader post-termination requirements, which also include ceasing to operate the franchised business under the City Wide brand, paying all sums owed to City Wide (including lost royalties and fees), changing phone numbers associated with City Wide, and providing lists of employees, subcontractors, suppliers, and customers to City Wide. These measures ensure a clean break between the franchisee and the City Wide system, protecting City Wide's brand and confidential information.
For a prospective franchisee, this means that access to and use of the City Wide proprietary software is strictly limited to the term of the agreement. Upon termination, the franchisee loses all rights to use the software and must take affirmative steps to destroy all copies. This could have significant implications for the franchisee's ability to continue operating a similar business independently, as they will need to find alternative software solutions.