What inspections might City Wide require before approving a transfer?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.4.10 Prior to the consummation of any Transfer under this Section 13.4, Franchisee and the prospective transferee will jointly request that CITY WIDE inspect of the Location and of Franchisee's books and records. As a result of such inspection, CITY WIDE may prepare a list setting forth the necessary repairs, maintenance, or other upgrades of the Location which will be required before CITY WIDE approves the Transfer, and CITY WIDE may also require that Franchisee pay any additional fees due CITY WIDE which may discovered as a result of the inspection.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, prior to any transfer of ownership, both the franchisee and the prospective buyer must jointly request that City Wide inspect the business location and the franchisee's financial records. Following this inspection, City Wide may create a list of necessary repairs, maintenance, or upgrades that the location requires before the transfer can be approved.
Additionally, City Wide may require the franchisee to pay any outstanding fees that are discovered during the inspection. This ensures that the location meets City Wide's standards and that all financial obligations are settled before new ownership takes over.
This process protects City Wide's brand and ensures consistency across all franchise locations. For a prospective franchisee, this means being prepared for potential costs associated with repairs, upgrades, and outstanding fees during a transfer. It is essential to maintain accurate and up-to-date financial records and keep the location in good condition to facilitate a smoother transfer process.