Which item in the City Wide Disclosure Document covers the franchisee's obligation to comply with standards, policies, and the Operating Manual?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
SECTION 7. Standards of Operation
Franchisee shall comply with all requirements contained in this Agreement, the Operating Manual and other written policies CITY WIDE supplies to Franchisee. Mandatory specifications, standards, operating procedures and rules CITY WIDE prescribes from time to time in the Operating Manual or otherwise communicated to Franchisee in writing will constitute provisions of this Agreement as if fully outlined in this Agreement. Any required standards set forth herein, the Operating Manual exist to protect CITY WIDE's interests in the System and the Marks and not to establish any control or duty to take control over those matters that are reserved to Franchisee. All references to this Agreement will include all such mandatory specifications, standards and operating procedures and rules. Franchisee's failure to comply with requirements set forth in this Agreement concerning quality and performance will constitute a material breach of and cause for termination of this Agreement. Franchisee will comply with the entire System including, but not limited to:
- 7.1 Commencing Operations.
Franchisee will commence operation of the Franchised Business not later than one hundred twenty (120) calendar days after the execution and acceptance of this Agreement.
Franchisee shall apply to all appropriate government authority for such permits, licenses and/or approvals which may be required to operate Franchisee's Franchised Business within the Designated Territory for Franchisee's Franchised Business within fourteen (14) calendar days after execution and acceptance of this Agreement.
Such permits, licenses, and/or approvals may include, but not be limited to, a general contractor's license.
Prior to the opening of the Franchised Business, Franchisee will have complied with all CITY WIDE's pre-opening standards and specifications.
If for any reason Franchisee fails to commence operation as provided in this Agreement, such failure will be considered a default and CITY WIDE may terminate this Agreement.
- 7.2 Permits and Certification.
Before commencing operation of the Franchised Business, Franchisee will, at Franchisee's expense, furnish CITY WIDE, for its approval, the following:
- 7.2.1 Copies of all permits and certifications as may be required for the lawful operation of the Franchised Business, together with copies of any building inspection reports and certifications from all governmental authorities having jurisdiction over the Designated Territory and the Franchised Business showing that all necessary permits have been obtained and that all requirements for operation have been met.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 28–29)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, Item 22, specifically Section 7, addresses the franchisee's obligation to comply with the standards, policies, and the Operating Manual. The franchise agreement mandates that franchisees adhere to all requirements outlined in the agreement, the Operating Manual, and any other written policies provided by City Wide. These mandatory specifications, standards, operating procedures, and rules prescribed by City Wide are considered provisions of the franchise agreement.
These standards exist to protect City Wide's interests in its system and marks, not to control matters reserved for the franchisee. Failure to comply with the quality and performance standards outlined in the agreement constitutes a material breach and can lead to termination of the agreement.
Item 11 also mentions the Operating Manual, stating that City Wide provides franchisees access to its confidential Operating Manual, which contains mandatory specifications, standards, operating procedures, and rules. Franchisees must adhere to all terms and conditions in the current Operating Manual, and City Wide's interpretation of the provisions is controlling. City Wide has the right to modify the Operating Manual periodically, provided that such changes do not alter the franchisee's fundamental status and rights or require unreasonable additional capital investment. Failure to follow the mandatory specifications and standards in the Operating Manual may constitute a material breach of the Franchise Agreement.