What recourse does City Wide have if a franchisee fails to meet customer service standards?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 14.2.2 If a threat or substantial danger to public health, safety, welfare or sanitation, or any notice of violation of any law, ordinance or regulation results from the construction, maintenance, or operation of the Franchised Business; or
- 14.2.3 If Franchisee fails, refuses, or neglects to pay any monies owing to CITY WIDE when due, or to submit the financial information or other reports required under this Agreement, and if such default is not cured within thirty (30) days after the giving of Notice of such default; or
- 14.2.4 If Franchisee fails to comply with any of the provisions of the Operating Manual or this Agreement, or to maintain any of the standards or procedures prescribed in this Agreement, the Operating Manual, or otherwise by CITY WIDE in writing, especially including, without limitation, failure to meet customer service and satisfaction standards;
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, if a franchisee fails to meet customer service and satisfaction standards, it constitutes a breach of the franchise agreement. City Wide can issue a written notification to the franchisee, outlining the nature of the default. The franchisee then has thirty (30) days, or another period specified in the agreement or by law, to correct the default to City Wide's satisfaction.
If the franchisee fails to correct the deficiency within the given timeframe, City Wide has the right to terminate the franchise agreement and all associated rights. This means City Wide can end the franchise relationship, and the franchisee would lose the right to operate under the City Wide brand.
This clause emphasizes the importance City Wide places on maintaining consistent customer service standards across all franchise locations. It ensures that franchisees adhere to the standards and procedures outlined in the Operating Manual and other written communications from City Wide. For a prospective franchisee, this highlights the need to fully understand and commit to City Wide's customer service expectations to avoid potential termination of the franchise agreement.
It is important to note that City Wide must provide written notice and an opportunity to cure the default before terminating the agreement. This provides the franchisee with a chance to rectify the situation and maintain their franchise. However, consistent failure to meet these standards can ultimately lead to the termination of the franchise agreement.