If a City Wide franchisee is required to dispose of proprietary items after termination, how long do they have to do so?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2.7 Upon CITY WIDE's request, assign and resell to CITY WIDE at depreciated market value Franchisee's interest in any proprietary equipment and items bearing the Marks or other intellectual property belonging to CITY WIDE, or furnish CITY WIDE with evidence satisfactory to CITY WIDE of compliance with such obligation by selling such Proprietary items to a CITY WIDE approved buyer or by proper destruction and disposal of such items within thirty (30) days after termination or expiration hereunder.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee has 30 days after termination or expiration of the franchise agreement to either sell proprietary items back to City Wide, sell them to a City Wide-approved buyer, or properly destroy and dispose of them. This obligation arises if City Wide requests the franchisee to take such action.
This requirement ensures that after the franchise agreement ends, the franchisee does not continue to use City Wide's proprietary equipment or items bearing their trademarks without authorization. It protects City Wide's brand and intellectual property by preventing unauthorized use or distribution of branded materials.
For a prospective franchisee, this means they need to be prepared to handle the disposal or resale of such items promptly upon termination. Failure to comply within the 30-day period could potentially lead to legal repercussions or other enforcement actions by City Wide to protect its assets and brand identity.