What happens if a City Wide franchisee fails to secure an acceptable Location?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
r to the Opening Date. You must secure an office site and obtain site approval from us within 120 days of the signing of the Franchise Agreement
You must secure an acceptable Location prior to commencing any business or promotional activities. If you fail to secure an acceptable Location, CITY WIDE may terminate the Franchise Agreement and refund to you your Initial Franchise Fee, less training and other expenses incurred by CITY WIDE, which will not exceed $10,000.
CITY WIDE anticipates the time between signing the Franchise Agreement and opening for business is likely to range from 30 to 120 days, depending on various factors like ease of obtaining equipment and licenses. You will commence operation of the Franchised Bu
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 29–36)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee must secure an acceptable location to operate their business. The franchisee is responsible for finding a location within their designated territory and submitting a description of the proposed site to City Wide for approval. If the location is leased, City Wide requires a copy of the proposed lease and site plan. City Wide then has 72 hours to approve or disapprove the location. Failure to respond within that time results in automatic disapproval.
City Wide evaluates potential locations based on factors such as population, demographics, general location, co-tenancy, economics, and physical appearance. The franchisee has 120 days from the signing of the Franchise Agreement to secure an approved location.
If the franchisee fails to secure an acceptable location within the specified timeframe, City Wide has the right to terminate the Franchise Agreement. In the event of termination due to failure to secure a location, City Wide will refund the Initial Franchise Fee to the franchisee. However, City Wide will deduct training and other expenses they incurred, with the deduction not exceeding $10,000.