Can City Wide request proof of residency for the franchisee or their Manager?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
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 CITY WIDE's approval of the Manager may be withdrawn if Franchisee is in default of the Franchise Agreement.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.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 43)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide retains the right to request proof of residency from both the franchisee and any appointed Manager. This requirement ensures that the franchisee or their Manager resides full-time, year-round, within the Designated Territory, as mandated by City Wide.
For a prospective franchisee, this means they must be prepared to provide documentation verifying their residency within the designated territory. If the franchisee chooses to appoint a Manager, that Manager must also meet the residency requirement, and City Wide can request proof of their residency as well. Additionally, the Manager must hold at least a 20% ownership interest in the franchisee entity and meet the qualifications City Wide requires for new franchisees.
This requirement is in place to ensure that the Franchised Business is actively managed by someone with a vested interest in the local community and who is readily available to oversee daily operations. The Manager must also sign the Guaranty and Assumption of Obligations, the Confidentiality Agreement, and the Non-Compete Agreement. City Wide's approval of the Manager can be withdrawn if the franchisee defaults on the Franchise Agreement, and City Wide may modify the criteria for Manager appointments over time.