What proof of sufficient assets must a City Wide franchisee provide and when?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Proof of Sufficient Assets. Within thirty (30) days after the execution of this Agreement, Franchisee must obtain, secure and furnish adequate proof of financing or furnish proof of the existence of assets in Franchisee's sole control, that is sufficient and in acceptable form to CITY WIDE, to fully and completely discharge the obligations of this Agreement (except Franchisee's continuing Royalty Fee and Marketing Fee contributions, and any other continuing obligation Franchisee owes CITY WIDE during the term of this Agreement, as defined and outlined in this Agreement). CITY WIDE will have the sole and absolute right to determine the sufficiency of all such proof of financing or assets. CITY WIDE will not begin training until Franchisee satisfies this requirement.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, within 30 days after signing the Franchise Agreement, a franchisee must provide City Wide with adequate proof of financing or proof of assets under their control. This proof must be sufficient to cover all obligations under the agreement, excluding ongoing royalty and marketing fees.
City Wide retains the sole right to determine if the provided financial proof is sufficient. Franchisee training will not commence until City Wide is satisfied with the franchisee's financial capacity. This requirement ensures that franchisees have the necessary capital to start and sustain their business operations.
This requirement is a standard practice in franchising, as it protects the franchisor by ensuring franchisees are financially stable and capable of meeting their financial obligations. Prospective franchisees should carefully assess their financial situation and prepare the required documentation to avoid delays in training and the commencement of their City Wide franchise.