What happens after the Initial Term of the City Wide Business Development Center Agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Term may collectively be referred to as "Initial Term". This Agreement will renew automatically for a period of
- For ease of reference herein, the New Franchisee Initial Term and the Existing Franchisee Initial six (6) months (collectively, each six month term, "Successor Term"), unless terminated in accordance with Section 3 of this Agreement.
Termination.
At any time after the Initial Term, either Party may terminate this Agreement upon providing ninety (90) days written notice to the other Party, with the termination effective on the ninetieth day from date of delivery of the written notice, and acceptance by the Parties.
Franchisee hereby acknowledges and accepts that any bonuses and/or commissions earned during the Term of the Agreement are still owed and payable pursuant to Exhibit B.
City Wide will have the right, without incurring any liability to Franchisee, by notice in writing effective when given, to terminate this Agreement in the event the Franchise Agreement is terminated by City Wide.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Business Development Center Agreement automatically renews for six-month periods (referred to as "Successor Terms") after the initial term, unless terminated according to the agreement's terms.
After the Initial Term, either City Wide or the franchisee can terminate the agreement by providing 90 days' written notice to the other party. The termination becomes effective on the 90th day following the delivery of the termination notice, provided the notice is accepted by both parties.
Franchisees should note that any bonuses or commissions earned during the term of the agreement remain owed and payable, even after termination. City Wide also retains the right to terminate the agreement immediately and without liability if the Franchise Agreement itself is terminated.