Does City Wide include a Business Development Center Agreement as part of its franchise agreements, as indicated by Attachment K?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
ATTACHMENT K TO THE FRANCHISE AGREEMENT BUSINESS DEVELOPMENT CENTER AGREEMENT
ATTACHMENT K TO
FRANCHISE AGREEMENT
CITY WIDE FRANCHISE COMPANY, INC.
BUSINESS DEVELOPMENT CENTER AGREEMENT
| This Business Development Center Agreement ("Agreement") dated is entered into by and between City Wide Franchise Company, Inc. ("City Wide") and ("Franchisee") |
|---|
| (City Wide and Franchisee, collectively "Parties" or individually "Party"). |
| RECITALS |
| A. |
| City |
| Wide |
| and |
| Franchisee |
| are |
| parties |
| to |
| that |
| certain |
| Franchise |
| Agreement |
| dated |
| ("Franchise |
| Agreement"),[as amended] |
| pursuant |
| to |
| which |
| Franchisee |
| is |
| granted |
| the |
| right |
| to |
| operate |
| a |
| City |
| Wide franchise in the Designated Territory, as defined in the Franchise Agreement ("Franchised Business"). |
| B. |
| Franchisee desires to enlist the Services (defined below) of City Wide's Business Development |
| Center for the purpose of |
| assisting in |
| the |
| prospecting and developing of local City |
| Wide clientele. Services will be |
| provided starting as of the date the Franchised Business opens for business ("Open Date" or as otherwise agreed |
| to by the Parties) hereinafter the "Effective Date". |
| C. |
| City Wide desires to provide said Services to Franchisee and Franchisee wishes to engage City |
| Wide to provide said Services, subject to the terms and conditions of this Agreement. |
| In consideration of the foregoing premises and the mutual covenants and agreements contained herein, the Parties |
| hereby agree as follows: |
| AGREEMENT |
| 1. |
| Services. |
| Subject to the terms of this Agreement and based on the information provided to City |
| Wide by Franchisee, City Wide agrees to provide various business development services to Franchisee, pursuant to |
| the selected package and/or selected services on the attached Business Development Services Packages ("Exhibit |
| A") attached hereto and made a part hereof (collectively, "Services"). |
| 2. |
| Term. |
| a. |
| NEW. Any new Franchisee signing a new Franchise Agreement for a new Franchised Business |
| is a new Franchisee to City Wide, the term of this Agreement will begin |
| on |
| the |
| "Effective |
| Date" |
| and |
| will |
| continue |
| for |
| a |
| period |
| of |
| twelve |
| (12) |
| months, |
| unless |
| terminated sooner in accordance |
| with Section 3 of this Agreement ("New Franchisee Initial Term"). |
| b. |
| EXISTING. If Franchisee |
| is an existing Franchise of |
| City |
| Wide |
| and |
| wishes |
| to |
| engage |
| City |
| Wide |
| for |
| the |
| BDC Services, the term of this Agreement will begin on date services to begin, the |
| ("Effective Date") and will continue for a period of six (6) months, unless terminated sooner |
| in accordance with Section 3 of this Agreement ("Existing Franchisee |
| Initial |
| Term"). |
Term may collectively be referred to as "Initial Term". This Agreement will renew automatically for a period of
- For ease of reference herein, the New Franchisee Initial Term and the Existing Franchisee Initial
six (6) months (collectively, each six month term, "Successor Term"), unless terminated in accordance with Section 3 of this Agreement.
Termination.
At any time after the Initial Term, either Party may terminate this Agreement upon providing ninety (90) days written notice to the other Party, with the termination effective on the ninetieth day from date of delivery of the written notice, and acceptance by the Parties.
Franchisee hereby acknowledges and accepts that any bonuses and/or commissions earned during the Term of the Agreement are still owed and payable pursuant to Exhibit B.
City Wide will have the right, without incurring any liability to Franchisee, by notice in writing effective when given, to terminate this Agreement in the event the Franchise Agreement is terminated by City Wide.
Pricing.
The fee structure ("Business Development Fee") for the Services is as set forth on Exhibit A and shall be paid via ACH monthly electronic withdrawal pursuant to the monthly payments due and payable in connection with the Franchise Agreement.
Independent Contractor.
It is understood and agreed by Franchisee that this Agreement and the provision of Services hereunder by City Wide does not create a fiduciary relationship between them, that the Parties will be independent contractors, and that nothing in this Agreement is intended to make either party a general or special agent, joint venture, partner or employee of the other for any purpose.
Results.
City Wide does not guarantee results or a certain number of appointments, followers, or sales.
Results are enhanced with regular communication between Franchisee or Franchisee's sales executive and the City Wide Business Development Center.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a Business Development Center Agreement is included as Attachment K to the franchise agreement. This agreement outlines the terms and conditions under which City Wide provides business development services to the franchisee. These services are designed to assist in prospecting and developing local City Wide clientele, commencing from the date the franchised business opens or as otherwise agreed upon by both parties.
The Business Development Center Agreement specifies the services City Wide will provide based on the package or services selected by the franchisee, as detailed in Exhibit A. For new franchisees, the agreement typically lasts for an initial term of twelve months, while for existing franchisees seeking BDC services, the term is six months, unless terminated earlier. Either party can terminate the agreement after the initial term with a 90-day written notice.
The agreement also covers the fee structure for the services, referred to as the Business Development Fee, which is outlined in Exhibit A and paid monthly via ACH electronic withdrawal, aligning with the franchise agreement's payment schedule. It is explicitly stated that City Wide and the franchisee operate as independent contractors, and City Wide does not guarantee specific results, such as a certain number of appointments or sales. The success of the services is enhanced through regular communication between the franchisee and the City Wide Business Development Center.