What must induce a franchisee to execute the City Wide franchise agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 30.4 Franchisee acknowledges that Franchisee has had sufficient opportunity to consult with Franchisee's own attorneys, accountants and other advisors and that the attorneys for CITY WIDE have not advised or represented Franchisee with respect to this Agreement or the relationship created by this Agreement.
- 30.5 Franchisee acknowledges that Franchisee is not, nor is Franchisee intended to be, a third party beneficiary of any other agreement or contractual relationship to which CITY WIDE is a party.
- 30.6 Franchisee acknowledges that the success of the Franchised Business contemplated by this Agreement depends, to a large extent, upon Franchisee as an independent businessperson having complete control and direction over Franchisee's business operations and employees, subject only to the conditions and obligations contained in this Agreement and that this Agreement does not constitute or create a security.
- 30.7 FRANCHISEE ACKNOWLEDGES THAT THIS AGREEMENT, ANY EXHIBIT ATTACHED TO THIS AGREEMENT AND THE DOCUMENTS REFERRED TO IN THIS AGREEMENT, WILL BE CONSTRUED TOGETHER AND CONSTITUTE THE ENTIRE, FULL AND COMPLETE AGREEMENT BETWEEN THE PARTIES CONCERNING THE SUBJECT MATTER OF THIS AGREEMENT, AND SUPERSEDES ALL PRIOR WRITTEN OR ORAL AGREEMENTS RELATING TO THIS AGREEMENT. FRANCHISEE UNDERSTAND AND AGREE THAT NO PERSON REPRESENTING OR PURPORTING TO REPRESENT CITY WIDE HAS ANY ACTUAL, IMPLIED, OR APPARENT AUTHORITY TO MAKE ANY REPRESENTATION OR STATEMENT TO FRANCHISEE CONCERNING THE SYSTEM OR THIS FRANCHISE AGREEMENT, OR ANY SUBJECT RELATED TO THIS AGREEMENT, WHICH IN ANY MANNER DIFFERS FROM THE SPECIFIC TERMS OF THIS AGREEMENT OR THE FRANCHISE DISCLOSURE DOCUMENT. FRANCHISEE AFFIRMATIVELY COVENANTS AND WARRANTS THAT NO COVENANTS, WARRANTS, AGREEMENTS, UNDERSTANDINGS, STATEMENTS, OR REPRESENTATIONS OTHER THAN THOSE SPECIFICALLY MADE IN THIS AGREEMENT OR IN THE FRANCHISE DISCLOSURE DOCUMENT HAVE INDUCED FRANCHISEE TO EXECUTE THIS AGREEMENT. FRANCHISEE FURTHER UNDERSTANDS THAT CITY WIDE IS RELYING ON FRANCHISEE'S COVENANTS AND WARRANTIES IN EXECUTING THIS AGREEMENT. NO AMENDMENT, CHANGE, OR VARIANCE FROM THE TERMS OF THIS AGREEMENT WILL BE BINDING ON THE PARTIES UNLESS MUTUALLY AGREED TO BY THE PARTIES AND EXECUTED BY THEM IN WRITING. NOTHING IN THIS AGREEMENT, OR ANY RELATED AGREEMENT IS INTENDED TO DISCLAIM THE REPRESENTATIONS MADE IN THE FRANCHISE DISCLOSURE DOCUMENT, ITS EXHIBITS AND AMENDMENTS.
BEFORE SIGNING THIS AGREEMENT, FRANCHISEE SHOULD READ THE DOCUMENT CAREFULLY WITH THE ASSISTANCE OF A TRUSTED ADVISOR SUCH AS AN ACCOUNTANT OR ATTORNEY.
CITY WIDE HAS NOT MADE ANY REPRESENTATIONS, WARRANTIES, OR INDUCEMENTS, EXPRESS OR IMPLIED, TO FRANCHISEE CONCERNING PROJECTED PROFITS.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the franchisee acknowledges that they have consulted with their own advisors and that City Wide's attorneys have not represented them. The franchisee also acknowledges that they are not a third-party beneficiary of any agreement City Wide is a party to. The success of the franchised business depends on the franchisee's control and direction over their business operations, subject to the conditions and obligations in the agreement. This agreement does not create a security.
The franchisee acknowledges that the franchise agreement, its exhibits, and referenced documents constitute the entire agreement between the parties and supersedes all prior agreements. No person representing City Wide has the authority to make any representation that differs from the terms of the agreement or the Franchise Disclosure Document. The franchisee warrants that no covenants, warranties, agreements, understandings, statements, or representations other than those in the agreement or the Franchise Disclosure Document have induced them to execute the agreement. City Wide is relying on the franchisee's covenants and warranties in executing the agreement.
No amendment or change to the terms of the agreement will be binding unless mutually agreed to in writing. Nothing in the agreement disclaims the representations made in the Franchise Disclosure Document, its exhibits, and amendments. Before signing the agreement, the franchisee should read it carefully with the assistance of a trusted advisor. City Wide has not made any representations, warranties, or inducements concerning projected profits.
In simpler terms, City Wide wants to ensure that franchisees are entering the agreement based solely on the information provided in the Franchise Disclosure Document and the franchise agreement itself. This protects City Wide from potential claims that franchisees were swayed by verbal promises or outside information. It also emphasizes the importance of franchisees conducting their own due diligence and seeking independent advice before signing the agreement.