What happens if a City Wide franchisee receives a notice of violation of any law?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that breach of the covenants made by Franchisee under this Agreement would cause irreparable injury to CITY WIDE which could not sufficiently be remedied by monetary damages, and therefore that CITY WIDE will be entitled to obtain, without bond, such equitable relief as declarations; temporary, preliminary, and permanent injunctions; and orders of specific performance for the following purposes, among any other purposes: to enforce the covenants made by Franchisee and any guarantors thereof pursuant to this Agreement, including but not limited to, those relating to Franchisee's use of the Marks and the non-competition covenants contained in Sections 5 and 12 of this Agreement, to enforce Franchisee's obligations upon termination or expiration of this Agreement; to prevent assignment of the Franchise or ownership interests of Franchisee in the business without the prior written consent of CITY WIDE, to prohibit any act or omission by Franchisee or Franchisee's employees that constitutes a breach of any term or provision of this Agreement or a violation of any applicable law or regulation; to prohibit any act or omission that is dishonest or misleading to prospective or current customers of businesses operated under the System; to prohibit any act or omission that constitutes a danger to other franchisees, employees, customers, or the public; or to prohibit any act or omission that may tend to impair the goodwill associated with the Marks.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, if a franchisee's act or omission constitutes a breach of any term or provision of the agreement or a violation of any applicable law or regulation, City Wide is entitled to obtain equitable relief without bond. This includes declarations, temporary, preliminary, and permanent injunctions, and orders of specific performance.
In such a scenario, City Wide can take action to prohibit the franchisee's actions. This is to prevent further violation of the law or the franchise agreement. The goal is to protect the interests of City Wide, its other franchisees, and the public.
This clause highlights the importance of adhering to all applicable laws and regulations while operating a City Wide franchise. Failure to do so can result in legal action and potential termination of the franchise agreement. Prospective franchisees should understand their obligations and ensure they operate their business in compliance with all relevant laws.