What is the length of the initial term for a City Wide franchise agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
2.1 Initial Term. This Agreement will take effect on the date of execution of this Agreement ("Effective Date"). The initial term ("Initial Term") will expire on the tenth anniversary of the Effective Date, unless terminated according to Section 14 of this Agreement.
2.2 Successor Term.
- 2.2.1 Franchisee may enter into two (2) consecutive five (5) year Successor Terms of this Agreement (each a "Successor Term") ("Initial Term" and "Successor Term" collectively may be referred to as the "Term" of this Agreement), subject to the conditions set forth in Section 2.2.3 below. If this is a Successor Term, this Agreement shall commence on the expiration of the Initial Term or the immediately preceding Successor Term and will continue until the end of the Successor Term.
- 2.2.2 Upon the expiration of the second Successor Term, you will have no right to renew this Agreement or sign a new franchise agreement for a Successor Term unless we are required to grant you the right by the laws of the state of your Franchised Business location.
- 2.2.3 Any grant of a successor franchise is subject to the following terms and conditions being fully satisfied:
- (a) This Agreement is in full force and effect on the last day of any Term and has not expired;
- (b) Franchisee must give CITY WIDE written notice of Franchisee's desire to enter into a Successor Term not less than one (1) year before the expiration of the then-current Term; upon receipt of Franchise's notice, CITY WIDE will have sixty (60) days to respond to such request.
- 2.2.4 At least ninety (90) days before the Term is set to expire, CITY WIDE will inspect the Franchised Business and equipment and notify Franchisee of all required maintenance, refurbishing, renovating, remodeling, and equipment upgrades; Franchisee agrees to complete at Franchisee's expense and to the satisfaction of CITY WIDE, all such maintenance, refurbishing, renovating, remodeling and equipment upgrades no later than thirty (30) days after the respective Term expires.
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 franchise agreement is ten years. The agreement takes effect on the date of execution and expires on the tenth anniversary of that date, unless terminated earlier according to Section 14 of the agreement.
Following the initial term, a City Wide franchisee has the option to enter into two consecutive five-year successor terms, potentially extending the franchise agreement for an additional ten years. These successor terms are subject to certain conditions, including the agreement being in full force and effect and the franchisee providing written notice of their desire to enter a successor term at least one year before the expiration of the current term. City Wide has 60 days to respond to the request.
At least 90 days before the term expires, City Wide will inspect the franchised business and equipment, notifying the franchisee of any required maintenance, refurbishing, renovations, remodeling, and equipment upgrades. The franchisee is responsible for completing these upgrades at their own expense to City Wide's satisfaction within 30 days after the term expires. This ensures that the City Wide franchise maintains its standards and quality throughout the term of the agreement and any extensions.