How long is the initial term of the City Wide accounting services agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 depends on the franchisee's business status. For a new franchise, the initial term begins 30 days before the business opens to the public. For an existing franchise, it starts 30 days after City Wide receives three complete billing cycles. There is also an interim option where the term is agreed to and described in Exhibit B Scope of Work.
Regardless of which of the three options applies, the initial term continues for 12 months, unless the parties agree otherwise in writing or the agreement is terminated earlier according to Section 3 of the agreement. After the initial 12-month term, the agreement automatically renews for successive six-month periods, referred to as "Successor Terms," unless terminated as per Section 3.
This means a City Wide franchisee has an accounting services agreement that lasts at least one year, and then automatically extends unless they or City Wide actively terminate it. Franchisees should carefully review Section 3 of the agreement to understand the conditions under which termination is possible. They should also clarify any details of the 'Interim' option with City Wide if that is applicable.