If the City Wide agreement's notice periods are less than required by law, what happens?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.7 Applicable Law.
To the extent that the provisions of this Agreement provide for periods of notice less than those required by applicable law, or provide for termination, cancellation, non-renewal or the like other than in accordance with applicable law, to the extent such provisions are not in accordance with applicable law, they will not be effective, and CITY WIDE will comply with applicable law in connection with each of these matters.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, if any provision in the franchise agreement regarding notice periods or termination does not align with applicable law, City Wide will adhere to the legal requirements. This means that if the agreement specifies a shorter notice period than what is legally mandated, the legally required longer period will take precedence.
For a prospective City Wide franchisee, this clause offers a degree of protection. It ensures that franchisees receive the minimum notice and termination rights guaranteed by law, regardless of what the franchise agreement might initially state. This is particularly important because franchise agreements are often drafted to favor the franchisor, and this provision ensures compliance with franchisee protection laws.
This clause reflects a standard practice in franchising, where franchisors must comply with federal and state laws that protect franchisees. It does not mean that a franchisee can ignore the terms of the agreement, but it does provide assurance that City Wide will not enforce provisions that are contrary to law. Franchisees should still consult with legal counsel to understand their rights and obligations under the franchise agreement and applicable laws.