What is the relationship between City Wide and the franchisee defined as in the accounting services agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| This | Franchise Accounting Services Agreement ("Agreement") dated is | |
|---|---|---|
| entered into by and between by and between City Wide Franchise Company, Inc. ("City Wide") and | ||
| ("Franchisee") | or | |
| (City | ||
| Wide | ||
| and | ||
| Franchisee, | ||
| collectively | ||
| "Parties" | ||
| individually "Party"). | ||
| RECITALS | ||
| A. | City Wide and Franchisee are parties to that certain Franchise Agreement dated | a |
| ("Franchise | ||
| Agreement"), pursuant | ||
| to | ||
| which | ||
| Franchisee | ||
| is | ||
| granted | ||
| the | ||
| right | ||
| to | ||
| operate | ||
| City | Wide franchise in the Designated Territory, as defined in the Franchise Agreement ("Franchised | |
| Business"). | ||
| B. | Franchisee desires to enlist the Services (defined below) of City Wide's Accounting |
It is understood and agreed by Franchisee that this Agreement and the provision of Services hereunder by City Wide does not create a fiduciary relationship between them, that the Parties will be independent contractors, and that nothing in this Agreement is intended to make either party a general or special agent, joint venture, partner or employee of the other for any purpose.
Franchisee will be solely responsible for providing City Wide with all requested and required documents, data, contracts, account information and access and other information and access reasonably requested by City Wide so that City Wide can provide the Services to Franchisee.
City Wide will not be responsible for the production of inaccurate information, records and billings or any other financial reports if the data submitted by Franchisee is inaccurate.
Franchisee will indemnify, defend and hold harmless City Wide and its past, present and future officers, directors, agents, attorneys, employees, shareholders, successors, assigns and affiliates (collectively "City Wide Indemnities") from and against any and all expenses, damages, taxes, claims, suits, losses, actions, judgments, liabilities and costs, including City Wide Indemnities' reasonable attorney's fees and in-house counsel fees, arising out of or based on any claim, action, judicial proceeding, administrative proceeding, personal injury or damage to real or personal property brought or threatened in connection with City Wide's provision of Services, or otherwise related to or arising out of any breach of this Agreement by City Wide.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the relationship between City Wide and the franchisee, as it pertains to the accounting services agreement, is defined as that of independent contractors. The agreement specifies that it does not establish a fiduciary relationship between the parties, and explicitly states that neither party is an agent, joint venture partner, or employee of the other for any purpose. This means the franchisee operates autonomously, and City Wide's role is limited to providing accounting and financial services as outlined in the agreement.
The franchisee is responsible for providing all necessary documents, data, and access to information required for City Wide to perform the accounting services. City Wide is not liable for inaccuracies in financial reports if the franchisee provides inaccurate data. This underscores the franchisee's responsibility for the accuracy and completeness of the information they supply to City Wide.
Furthermore, the franchisee is obligated to indemnify City Wide from any expenses, damages, or liabilities arising from City Wide's provision of services or any breach of the accounting services agreement by the franchisee. This indemnification clause highlights the franchisee's potential financial responsibility for issues stemming from the services provided by City Wide under the agreement. The Franchise Accounting Services Agreement is between City Wide Franchise Company, Inc. and the Franchisee.