How can the initial term of the City Wide accounting services agreement be altered?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Initial Term. The Term of this Agreement shall be one of the following three options:
a. New. Thirty (30) days prior to the Franchised Business opens for business to the general public;
b. Existing. Thirty (30) days after receipt of three (3) complete billing cycles, if the Franchised Business is already open prior to the Effective Date; or
c. Interim. As agreed to and described in the attached Exhibit B Scope of Work,
All the above Terms will continue for a period of twelve (12) months, unless otherwise agreed to in writing among the Parties, or terminated sooner in accordance with Section 3 of this Agreement ("Initial Term"). This Agreement will renew automatically for a period of six (6) months (collectively, each six month term, "Successor Term"), unless terminated in accordance with Section 3 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the initial term of the accounting services agreement is generally 12 months. There are three options for when the term begins: 30 days before the franchise opens, 30 days after receiving three billing cycles if the business is already open, or as agreed in Exhibit B.
However, the agreement specifies that the initial term can be altered if the parties agree to a different arrangement in writing. This provides flexibility for City Wide and the franchisee to adjust the term based on their specific needs and circumstances. Any such changes must be documented in writing to be enforceable.
After the initial term, the agreement automatically renews for successive six-month periods (Successor Terms) unless terminated according to Section 3 of the agreement. This automatic renewal continues unless either party provides 90 days written notice of termination, effective on the 90th day from the notice date. Therefore, while the standard initial term is 12 months, the possibility of written modification allows for deviations from this default period.