What happens to the franchisee's right to operate the City Wide franchised business after the agreement ends?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
15.2 At the end of the Term of this Agreement, whether because of an event of default pursuant to Section 14 above or otherwise, Franchisee will immediately do each of the following:
15.2.1 Cease to be a franchisee of CITY WIDE and cease to operate the former Franchised Business or any other business using any part of the System or Marks.
After that Franchisee will not, directly or indirectly, represent to the public that the former Franchised Business is or was operated in any way connected with the System or hold itself out as a present or former franchisee of CITY WIDE.
- 15.2.2 Pay all sums owing to CITY WIDE.
Upon termination of this Agreement for any default by Franchisee, such sums will include lost Royalties Fees, Marketing Fees and other fees for the remainder of the Term, and other damages, costs, and expenses incurred by CITY WIDE as a result of the default.
- 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.
15.2.4 Change all phone numbers then listed under any Mark owned by CITY WIDE and assign to CITY WIDE the right to use all such phone numbers.
15.2.5 Provide CITY WIDE with a complete list of Franchisee's employees, subcontractors and suppliers, their respective addresses, and any outstanding amounts Franchisee may owe to any third party.
15.2.6 Provide CITY WIDE with a complete list of all customers for the past three years, subcontractors, contacts names, and the like, including all address and telephone information for each name listed.
Additionally, Franchisee shall provide upon CITY WIDE's request, copies of all of Franchisee's files, correspondence, billing records, bid sheets, and all other records of the Franchised Business including, but not limited to, all client agreements, all investment recaps, and all Schedule A details of service.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, Section 15.2 outlines the franchisee's obligations upon the termination of the franchise agreement. Upon the end of the agreement, the franchisee must immediately cease operating as a City Wide franchisee and discontinue using any part of the City Wide system or its marks. The franchisee is prohibited from representing to the public that the former franchised business is connected with the City Wide system or holding themselves out as a present or former franchisee of City Wide. This means a franchisee cannot continue to benefit from City Wide's brand recognition or operational methods after the agreement concludes.
Additionally, the franchisee is obligated to pay all outstanding sums to City Wide. If the termination results from a default by the franchisee, these sums will include lost royalties, marketing fees, and other fees for the remaining term of the agreement, as well as any other damages, costs, and expenses incurred by City Wide due to the default. The franchisee must also cease using and destroy all tangible copies of the operating manual, the software, and all other confidential information, ensuring no proprietary information is retained. However, the franchisee is allowed to keep their copy of the franchise agreement, any correspondence between the parties, and any documents needed for legal compliance.
Furthermore, the franchisee is required to change all phone numbers listed under any mark owned by City Wide and assign the right to use those numbers to City Wide. The franchisee must also provide City Wide with a complete list of their employees, subcontractors, and suppliers, including their addresses and any outstanding amounts owed to third parties. Finally, the franchisee must provide City Wide with a complete list of all customers for the past three years, including subcontractors, contact names, addresses, and telephone information. Upon City Wide's request, the franchisee must also provide copies of all files, correspondence, billing records, bid sheets, and other records of the franchised business, including client agreements, investment recaps, and Schedule A details of service. These post-termination obligations ensure a clean break between the franchisee and City Wide, protecting City Wide's brand, system, and confidential information.