What other qualifications does City Wide consider for a proposed transferee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Any purported assignment or transfer, by operation of law or otherwise, not having the prior written consent of CITY WIDE will be null and void and will constitute a material breach of this Agreement entitling CITY WIDE, at its sole and absolute right, to immediately terminate this Agreement; provided however, that CITY WIDE will not unreasonably withhold its approval of a Transfer to a proposed transferee who is of good moral character and whose business experience and aptitude, financial resources, and other qualifications meet CITY WIDE's then-current standards, so long as Franchisee is in full compliance with this Agreement at the time of the proposed Transfer.
- 13.3 Transfer by Franchisee Resulting in No Loss of Control.
Notwithstanding Section 13.2, if Franchisee or any Affiliated Company is a corporation, the terms and conditions of this Section 13 will not be deemed to apply to any Transfer of the voting stock of, or other ownership interest in, Franchisee or such Affiliated Company, which would not, alone or together with other related or unrelated, previous, simultaneous or proposed Transfers, result in a loss of Control (as defined below) of Franchisee or an Affiliated Company by the persons and/or entities listed on the Acknowledgment Regarding Ownership attached to this Agreement as Attachment G.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise to someone else, the proposed transferee must meet City Wide's current standards and requirements for becoming a franchisee. City Wide will assess the proposed transferee's qualifications.
City Wide may also consider the moral character, business experience, and aptitude of the proposed transferee. The proposed transferee must also complete the initial training program to City Wide's satisfaction and pay all associated fees. City Wide also requires the franchisee to be in full compliance with the existing franchise agreement at the time of the proposed transfer.
Additionally, City Wide may require the transferee to execute the current form of the franchise agreement and provide guarantees of their obligations under the agreement. City Wide retains the right to reject a transfer if the purchase price or terms agreed upon between the franchisee and the prospective buyer are deemed excessive or not conducive to the buyer's success as a franchisee.
Prospective City Wide franchisees should carefully review Section 13.4 within Item 22 of the Franchise Agreement to fully understand all requirements and conditions for transferring a franchise. It is important to discuss these requirements with City Wide during the due diligence process.