What level of effort is City Wide franchisee required to devote to the franchised business?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
At all times Franchisee will be directly engaged in the day-to-day management and oversight of the Franchised Business for the purpose of generating business and increasing the inherent value of the Franchised Business and the System.
Franchisee must live year-round and full time in the Designated Territory.
If more than one (1) individual has executed this Agreement as Franchisee, Franchisee must designate one (1) individual who will devote his or her full time and will be directly involved in the operation of the Franchised Business.
Franchisee will always faithfully, honestly, and diligently perform Franchisee's obligations under this Agreement and will not engage in any business or other activities that will conflict with Franchisee's obligations under this Agreement
- 7.11.1 If the Franchised Business is in the top twenty-five percent (25%) of the System in terms of Annual Revenue Per Capita Growth or a similar metric established from time to time by CITY WIDE, Franchisee may designate a trained and competent employee to be a full-time manager ("Manager") to run the day-to-day operations of the Franchised Business with Franchisee providing its continued support to the Manager, subject to CITY WIDE'S sole and absolute discretion and the conditions set forth below.
Where the Franchised Business is the first CITY WIDE business in the Designated Territory or surrounding area, the option of appointing a Manager is not available.
The Franchisee must directly operate and manage the Franchised Business.
Where a Franchisee is wishing to designate a Manager, the following minimum conditions must be met:
(a) Manager must meet the then-criteria used by CITY WIDE for approving new franchisees.
(b) Manager must have the necessary experience in accordance with the Operating Manual to operate the Franchised Business.
(c) Manager must own at least a twenty percent (20%) interest in Franchised Business (if Franchisee is an entity, Manager must own twenty percent (20%) of the entity that owns the Franchised Business); provided however, that CITY WIDE may agree to an alternative arrangement (other than direct ownership by the Manager) in exceptional circumstances.
(d) Manager must live in the Designated Territory and must devote fulltime, year round and best efforts to supervising the operation of the Franchised Business on a daily basis.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees are expected to be actively involved in the day-to-day management and oversight of the franchised business to generate business and increase its value. Franchisees must live year-round and full-time in their designated territory. If the franchise agreement is executed by more than one individual, they must designate one person to be fully involved in the business operations. Franchisees must also devote their best efforts to promote and increase sales and services of the City Wide system. They must also maximize revenues and profits.
These requirements ensure that City Wide franchisees are fully committed to their business and the City Wide brand. By requiring full-time residency and active management, City Wide aims to maintain consistent quality and service across all locations. The emphasis on revenue and profit maximization aligns the franchisee's goals with the franchisor's, promoting a mutually beneficial relationship.
However, there is an exception: if the franchised business is in the top 25% of the system in terms of Annual Revenue Per Capita Growth, the franchisee may designate a trained and competent employee as a full-time manager to run the day-to-day operations, provided the franchisee continues to support the manager. The manager must meet City Wide's criteria for new franchisees, have the necessary experience, own at least 20% interest in the business, live in the designated territory, and devote full-time effort to supervising the operation. This option is not available if the franchised business is the first City Wide business in the designated territory or surrounding area.
Overall, the FDD indicates that City Wide expects a significant time and effort commitment from its franchisees, reflecting the brand's emphasis on active management and local market engagement. The exception for top-performing businesses provides some flexibility, but even in those cases, the franchisee must remain involved and ensure the manager meets specific criteria.