How many City Wide Franchised Businesses is a Franchisee entitled to operate under the Agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.1 Subject to all the terms and conditions contained in this Agreement, CITY WIDE grants Franchisee the exclusive right and license to operate a Franchised Business using the System, Software (as defined in Section 11), and Marks solely in the territory ("Designated Territory") as outlined in Attachment B, which is attached to and made a part of this Agreement by reference. Franchisee accepts such right and license, subject to such terms and conditions, and agrees to operate the Franchised Business and to use the System, Software and Marks solely in connection with the Franchised Business.
- 1.2 So long as this Agreement is in force and effect and Franchisee is not in material default under any of its terms, Franchisee will have the exclusive right to operate a Franchised Business in the Designated Territory. Other than in the Designated Territory described in Attachment B, CITY WIDE may itself operate or license to others the right to operate Franchised Businesses utilizing the System and the Marks.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee is granted the exclusive right and license to operate one franchised business within their designated territory, as outlined in Attachment B of the Franchise Agreement. This right is contingent upon the franchisee adhering to the terms and conditions of the agreement and remaining in good standing, meaning they are not in material default of the agreement.
The agreement specifies that City Wide retains the right to operate or license other franchised businesses outside the franchisee's designated territory. This ensures that while a franchisee has exclusivity within their territory, City Wide can continue to expand its brand presence through other franchisees or corporate-owned locations in different areas.
The City Wide system emphasizes uniformity and adherence to standards, which are crucial for maintaining the brand's goodwill. Franchisees are obligated to use prescribed equipment, layouts, and designs, strictly adhere to the Operating Manual, and offer only designated service and product lines. This standardization helps ensure a consistent customer experience across all City Wide locations.
Failure to comply with the agreement's terms, including minimum staffing requirements, can result in penalties such as a reduction in the designated territory size, reduced field visits from City Wide, mandatory additional training at the franchisee's expense, ineligibility for awards, and reduced support from City Wide. In extreme cases, non-compliance can lead to termination of the agreement, highlighting the importance of adhering to City Wide's standards and policies.