For a new City Wide franchise, when does the initial term of the accounting services agreement begin?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 for a new franchise begins thirty days prior to the date the franchised business opens to the general public. The agreement lasts for twelve months, unless otherwise agreed to in writing by both parties, or if terminated sooner according to the agreement's terms.
This agreement automatically renews for successive six-month terms unless terminated according to the terms in Section 3 of the agreement. After the initial twelve-month term, either party can terminate the agreement by providing ninety days written notice to the other party.
As a prospective franchisee, it is important to understand the terms and conditions of the Accounting Services Agreement, as well as the circumstances under which it can be terminated. It is also important to note that the franchisee is required to use City Wide's financial reporting, bookkeeping, and other accounting services for the first twelve months after completing the initial training program.