How many consecutive five-year Successor Terms may a City Wide franchisee enter into?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, a franchisee can enter into two consecutive five-year Successor Terms. The initial franchise agreement term, combined with any Successor Terms, is referred to as the "Term" of the agreement.
Upon the expiration of the second Successor Term, the franchisee does not have an automatic right to renew the agreement or sign a new franchise agreement for another Successor Term. An exception exists if the laws of the state where the franchised business is located require City Wide to grant this renewal right.
To be eligible for a Successor Term, the franchise agreement must be in full force and effect, and the franchisee must provide City Wide with written notice of their desire to renew at least one year before the current term expires. City Wide then has 60 days to respond to the request. Additionally, City Wide will inspect the franchised business and equipment at least 90 days before the term's expiration to identify any required maintenance, refurbishing, renovations, remodeling, or equipment upgrades, which the franchisee must complete at their own expense within 30 days after the term expires.