What notification is required if legal action is filed against a City Wide franchisee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.23 Notice of Legal Action.
Franchisee will notify CITY WIDE in writing within five (5) business days of receipt of service or notice of the commencement of any action, suit, or proceeding, and of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality, including action against professional services/credentials of any employee or contractor associated with Franchisee, which may adversely affect the operation or financial condition of the Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee must provide written notification to City Wide within five business days of receiving service or notice of any legal action. This includes any action, suit, or proceeding, as well as any order, writ, injunction, award, or decree from any court, agency, or governmental body. The notification requirement also extends to actions against the professional services or credentials of any employee or contractor associated with the franchisee.
This notification is required if the legal action may adversely affect the operation or financial condition of the franchised business. This broad language means a City Wide franchisee must promptly inform City Wide of virtually any legal issue that could impact the business.
This requirement ensures that City Wide is aware of potential legal issues that could affect the brand or the franchise system as a whole. It allows City Wide to take appropriate steps to protect its interests and provide support to the franchisee if necessary. Failing to provide timely notice could result in a breach of the franchise agreement.