How long is each Successor Term for the City Wide accounting services agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 City Wide Franchise Disclosure Document, the accounting services agreement automatically renews for a period of six months for each Successor Term. These Successor Terms will continue unless the agreement is terminated according to Section 3 of the agreement.
This means that after the initial term of the accounting services agreement (typically 12 months), the agreement will automatically extend for successive six-month periods. This automatic renewal provides continuity but also requires the franchisee to actively manage the agreement if they wish to terminate it.
To terminate the agreement, the franchisee must adhere to the conditions outlined in Section 3, which generally involves providing written notice within a specified timeframe. This ensures that both City Wide and the franchisee have adequate time to prepare for the termination of the services. Franchisees should be aware of these renewal and termination terms to effectively manage their accounting services agreement with City Wide.