What qualifications does City Wide require for a Manager?

You are required to personally oversee the day-to-day operations of the Franchised Business and must reside full-time, year-round, within the Designated Territory. If the Franchisee wishes to appoint a full-time Manager ("Manager") to handle daily operations at a specific location, you must first obtain approval from CITY WIDE. The Manager must be a trained and competent employee, possess the necessary experience to operate the Franchised Business in accordance with the Operating Manual, and reside full-time, yearround within the Designated Territory. Additionally, the Manager must hold at least a 20% ownership interest in the Franchisee and meet the current qualifications CITY WIDE requires for new franchisees. If a Manager is appointed, you are expected to fully support them in their role. CITY WIDE reserves the right to request proof of residency for you or your Manager, as well as documentation verifying the Manager's ownership interest. The Manager must sign the Guaranty and Assumption of Obligations, the Confidentiality Agreement, and the Non-Compete Agreement, attached hereto as Attachments A, E, and F respectively. CITY WIDE's approval of the Manager may be withdrawn if Franchisee is in default of the Franchise Agreement. From time to time, CITY WIDE may modify the criteria outlined herein and establish new criteria as it relates to the appointment of the Manager.

You must comply with CITY WIDE's staffing requirements which are detailed in the Operating Manual. Your failure to comply with these requirements will constitute a material breach of the Franchise Agreement and will permit CITY WIDE to terminate the Franchise Agreement.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 43)