If a City Wide franchisee requests additional assistance from City Wide to facilitate the opening of the Franchised Business, who is responsible for reimbursing City Wide's expenses?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) CITY WIDE will provide such assistance at its sole and absolute right as CITY WIDE determines is required in connection with the opening of the Franchised Business, including assistance in hiring Franchisee's personnel and planning and developing of pre-opening and promotional programs. During this period, CITY WIDE's representative will also assist Franchisee in establishing and standardizing procedures and techniques essential to the operation of a Franchised Business and will assist in training Franchisee's personnel. If Franchisee requests additional assistance from CITY WIDE to facilitate the opening of the Franchised Business, and if CITY WIDE deems it necessary and appropriate, Franchisee will reimburse CITY WIDE for CITY WIDE's expense of providing such additional assistance.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, if a franchisee requests additional assistance from City Wide to help with opening their franchise, the franchisee is responsible for reimbursing City Wide for the expenses incurred in providing that assistance. However, this reimbursement is contingent on City Wide deeming the additional assistance as necessary and appropriate.
City Wide provides initial assistance to franchisees during the opening of their business, including help with hiring personnel and developing pre-opening promotional programs. During this time, City Wide's representative will also assist the franchisee in establishing procedures and techniques essential to operating the franchise and will assist in training the franchisee's personnel. The franchisee is only responsible for expenses related to additional assistance beyond this initial support if City Wide approves the request.
This arrangement means that franchisees need to carefully assess their needs and resources during the initial setup phase. Requesting additional support can incur extra costs, so franchisees should aim to leverage the standard assistance provided by City Wide effectively. It also highlights the importance of clear communication with City Wide regarding the support needed and understanding the associated costs before incurring them.