What information is required regarding the Franchisee in the City Wide addendum for City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
2.2.5 Franchisee must not be in default of any provision of this Agreement, any amendment to this Agreement, or any other agreement between CITY WIDE or its respective subsidiaries or affiliates, and at all times Franchisee must have substantially complied with all the terms and conditions of this Agreement and any other agreements between the parties during the respective Terms, including but not limited to then current Annual Revenue Per Capita Growth requirement (See Section 6.5).
2.2.6 Franchisee's operation of the Franchised Business must be in full compliance with the standards, specifications, requirements, instructions set forth in this Agreement and in the Operating Manual of CITY WIDE.
2.2.7 Franchisee's operations under all other Franchise Agreements, if any, must be in full compliance with the standards, specifications, requirements, instructions set forth under all other Franchise Agreements and in the Operating Manual of CITY WIDE.
2.2.8 Franchisee must have satisfied all monetary obligations Franchisee owes to CITY WIDE and its subsidiaries and affiliates and timely met such obligations throughout the respective Term.
2.2.9 Franchisee must execute the form of franchise agreement being used by CITY WIDE at the time Franchisee renews, including the Successor Addendum (See Attachment J) (collectively, "Successor Franchise Agreement"), which Successor Franchise Agreement will in all respects supersede this Agreement and the terms of which may differ from the terms of this Agreement, including, without limitation, a higher percentage Royalty Fee (See Section 3.7.1) and Marketing Fee (See Section 3.7.2(a).
2.2.10 Franchisee must pay CITY WIDE a renewal fee ("Successor Fee") equal to fifty percent (50%) of the then-current Initial Franchise Fee set forth in the Franchise Disclosure Document , at the time Franchisee executes the Successor Franchise Agreement which amount will be instead of payment of a new Initial Franchise Fee.
2.2.11 Franchisees must comply with CITY WIDE's then-current criteria for operating a Franchised Business, including CITY WIDE's then-current franchisee qualification and training requirements.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the franchisee must adhere to several requirements outlined in the franchise agreement and operating manual. These include maintaining compliance with all agreements, standards, specifications, and instructions set forth by City Wide. The franchisee's operations under any other franchise agreements must also be fully compliant with City Wide's standards.
Financially, the franchisee must satisfy all monetary obligations owed to City Wide and its affiliates, ensuring timely payments throughout the term. When renewing the franchise agreement, the franchisee must execute the current form of agreement, including any Successor Addendum. This new agreement may have different terms, such as higher royalty and marketing fees. Additionally, a Successor Fee equal to fifty percent of the then-current Initial Franchise Fee is required upon renewal, instead of paying a new Initial Franchise Fee.
Furthermore, franchisees must comply with City Wide's current criteria for operating a franchised business, including meeting the franchisor's qualification and training requirements. These stipulations ensure that all franchisees operate under a consistent set of standards and maintain the integrity of the City Wide brand. Prospective franchisees should carefully review these requirements to understand their obligations and the potential costs associated with renewing their franchise agreement.