If a City Wide franchisee does not participate in the National Business Development Program, can City Wide provide services to fulfill a National Account in the franchisee's territory?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
but a relationship with a Top-down Account or a Preferred vendor Account might be established by CITY WIDE after you enter into this Agreement.
Under the Top-Down Account approach, CITY WIDE may engage in any distribution channel to secure an order ("Order") for any System product or service calling for delivery or performance in Franchisee's Designated Territory. In the event CITY WIDE secures an Order in Franchisee's Designated
Territory, CITY WIDE will first offer the Order to Franchisee at the price CITY WIDE established with the Top-Down Account. If Franchisee is unwilling or unable to fulfill the Order CITY WIDE's affiliate, Arete or a third party CITY WIDE designee (including another franchisee) may fulfill that particular Order. Franchisee will not receive compensation for any Order Franchisee does not service.
If a Top-Down Account is in your Designated Territory and is serviced by either Arete or another franchisee in an adjacent territory to your Designated Territory, you will pay a fee to either Arete or another franchisee in the event you wish to take over servicing that Order. The fee you will pay is as outlined on Attachment B attached to this Agreement. If the National Account is being serviced by Arete, the fee you pay to Arete will be contributed to the National Marketing Fund.
The key characteristics of the aspects of the National Business Development Program are further described and outlined in the current Operating Manual.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, even if a franchisee is unwilling or unable to fulfill an order from a Top-Down Account within their designated territory, City Wide or its affiliates can still fulfill that order. Specifically, City Wide's affiliate, Arete, or another third party designated by City Wide, including another franchisee, can service the order. The franchisee who originally held the territory will not receive any compensation for the order they did not service.
If a Top-Down Account is located in a franchisee's designated territory but is serviced by Arete or another franchisee from an adjacent territory, the franchisee must pay a fee to Arete or the other franchisee if they want to take over servicing that order. If Arete is servicing the National Account, the fee paid to Arete will be contributed to the National Marketing Fund.
City Wide retains the right to establish and maintain the National Business Development Program, but it is not obligated to do so. City Wide also reserves the right to modify or discontinue the program at any time by providing written notice to the franchisee. Franchisees are required to participate and cooperate in the National Business Development Program, including adhering to specific marketing and distribution guidelines, with further details available in the Operating Manual and other communications from City Wide.