What notification is required before a City Wide franchisee takes legal action against a customer?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will notify CITY WIDE promptly in writing prior to taking legal action against any customer, supplier or independent contractor, and Franchisee will notify CITY WIDE promptly in writing of any legal action of any kind or nature, filed against Franchisee by anyone during the term or extension of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee must notify City Wide in writing before taking legal action against a customer. This notification must be made promptly. This requirement is also applicable before taking legal action against any supplier or independent contractor.
This notification requirement allows City Wide to stay informed about potential legal issues involving its franchisees and their business operations. It gives City Wide an opportunity to assess the situation, offer guidance, and potentially intervene to protect the brand's reputation or resolve the issue amicably.
By requiring prompt written notification, City Wide aims to maintain control over legal matters that could impact the franchise system. This proactive approach enables City Wide to manage risks, ensure consistency in legal strategies, and safeguard the overall interests of the franchise network. Franchisees should be aware of this obligation and ensure they comply with the notification requirement to avoid potential breaches of the franchise agreement.