What monetary obligations must a City Wide franchisee satisfy to be eligible for a Successor Term?

According to City Wide's 2025 Franchise Disclosure Document, a franchisee must meet certain monetary obligations to be eligible for a Successor Term. Specifically, the franchisee must have satisfied all monetary obligations owed to City Wide and its subsidiaries and affiliates, and must have met these obligations in a timely manner throughout the current term. This indicates that any outstanding debts, fees, or other financial commitments to City Wide must be fully resolved to qualify for renewal.

In addition to satisfying existing monetary obligations, the franchisee must also pay a renewal fee, referred to as the "Successor Fee." This fee is equal to fifty percent (50%) of the then-current Initial Franchise Fee outlined in the Franchise Disclosure Document at the time the franchisee executes the Successor Franchise Agreement. This Successor Fee is paid instead of a new Initial Franchise Fee, suggesting that it is a discounted rate for existing franchisees seeking to renew their agreement. The document specifies that the franchisee must execute the form of franchise agreement being used by City Wide at the time of renewal, including the Successor Addendum.

In summary, to be eligible for a Successor Term with City Wide, a franchisee must ensure all existing financial obligations are met promptly and in full. They must also be prepared to pay a Successor Fee equivalent to 50% of the current Initial Franchise Fee at the time of renewal. Meeting these financial requirements, along with other operational and compliance standards, is essential for securing a renewal of the franchise agreement.