If a City Wide franchisee's real or personal property is sold after levy, what are the consequences?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will notify CITY WIDE in writing within five (5) business days of receipt of service or notice of the commencement of any action, suit, or proceeding, and of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality, including action against professional services/credentials of any employee or contractor associated with Franchisee, which may adversely affect the operation or financial condition of the Franchised Business.
- 7.24 National Meetings.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the consequences of a City Wide franchisee's real or personal property being sold after levy are not explicitly detailed. However, the FDD does outline circumstances regarding indemnification and potential legal actions that could be related to such an event.
The franchisee is generally responsible for indemnifying City Wide against losses, costs, and expenses resulting from the operation of the franchised business. This includes costs related to damage to property. Additionally, the franchisee is required to notify City Wide of any legal actions that may adversely affect the operation or financial condition of the franchised business within five business days of receiving notice.
While the FDD does not directly address the scenario of property being sold after levy, these general obligations and notification requirements suggest that such an event could trigger certain responsibilities for the franchisee, including potential indemnification obligations and the duty to inform City Wide of the situation. A prospective franchisee should seek clarification from City Wide regarding the specific implications of property sales after levy and how they might affect their obligations under the Franchise Agreement.