Does City Wide have an obligation to buy back franchises previously sold?

According to City Wide's 2025 Franchise Disclosure Document, City Wide does not have an obligation to buy back franchises previously sold. However, City Wide has the right to buy back franchises. If a franchisee obtains an offer, City Wide can match that offer and repurchase the franchise. This buyback is not an obligation but an option for City Wide.

For a prospective franchisee, this means that City Wide is not required to repurchase the franchise if the franchisee wishes to sell. The franchisee would need to find a buyer, and City Wide has the option to step in and buy the franchise themselves by matching the offer. This clause provides City Wide with some control over who becomes a franchisee in their system.

This arrangement is not uncommon in franchising. Franchisors often want to maintain control over their brand and the quality of their franchisees. By having the right of first refusal, City Wide can ensure that any new franchisee meets their standards and is a good fit for the system. Franchisees should consider this when planning their exit strategy, as it may impact the pool of potential buyers and the ultimate sale price.