What is the purpose of the recitals section in the City Wide Business Development Center Agreement?

According to City Wide's 2025 Franchise Disclosure Document, the recitals section in the Business Development Center Agreement serves to lay out the foundational understanding and intentions between City Wide and the franchisee. Specifically, the recitals section in the City Wide Business Development Center Agreement outlines the existing franchise relationship, the franchisee's desire to utilize City Wide's Business Development Center services for prospecting and developing local clientele, and City Wide's willingness to provide these services. The recitals section also establishes the effective date of the agreement, which is when the franchised business opens or as otherwise agreed upon by both parties.

In essence, the recitals section provides context for the agreement by acknowledging the pre-existing franchise agreement and the franchisee's need for business development support. It clarifies that City Wide is offering these services to aid the franchisee in acquiring local clients. This section sets the stage for the detailed terms and conditions that follow in the agreement, ensuring both parties are aligned on the purpose and scope of the business development services.

For a prospective City Wide franchisee, understanding the recitals is crucial as it confirms the link between the franchise agreement and the business development services. It highlights that these services are designed to help the franchisee grow their local client base, which is a key factor in the success of their City Wide franchise. The recitals also emphasize that the services will commence once the franchise is operational, aligning the support with the franchisee's business launch.