What are 'Required Suppliers' for a City Wide franchise, and how are they designated?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
From time to time, CITY WIDE will provide to Franchisee either in the Operating Manual or posted on CITY WIDE'S internal website ("CW You") a list of approved manufacturers, suppliers and distributors authorized for the Franchised Business ("Approved Suppliers List") and a list of approved inventory, products, fixtures, furniture, equipment, signs, stationery, supplies, and other items or services necessary to operate the Franchised Business ("Approved Supplies List").
From time to time as set forth in the Operating Manual, CITY WIDE may designate suppliers on the Approved Suppliers List as required suppliers ("Required Suppliers") from whom you must purchase inventory, products, services or other items and services.
Currently, on the list of Required Supplier is ADP Payroll Services which you are required to use for your payroll services.
You may not use payroll services from any other provider.
Such lists will specify the manufacturer, supplier and distributor and the inventory products, fixtures, furniture, equipment, signs, stationery, supplies and services which CITY WIDE has approved to be carried or used in the System.
CITY WIDE may revise the Approved Suppliers List and Approved Supplies List from time to time at its sole and absolute right.
Such approved lists will be submitted to Franchisee as CITY WIDE deems advisable.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, 'Required Suppliers' are suppliers on the Approved Suppliers List that City Wide designates as mandatory for franchisees to purchase inventory, products, services, or other items and services from. City Wide provides franchisees with a list of approved manufacturers, suppliers, and distributors authorized for the franchised business, known as the "Approved Suppliers List," either in the Operating Manual or posted on City Wide's internal website, "CW You".
City Wide may revise the Approved Suppliers List from time to time at its sole and absolute right. These approved lists will be submitted to the franchisee as City Wide deems advisable. Currently, ADP Payroll Services is the only listed Required Supplier, and franchisees are mandated to use them for payroll services and may not use payroll services from any other provider.
This requirement ensures uniformity and quality control within the City Wide franchise system. While franchisees generally have the autonomy to propose alternative suppliers or products, City Wide retains the right to approve or disapprove them based on their specifications and quality standards. This process involves the franchisee notifying City Wide and submitting samples and information for examination and testing, with the franchisee bearing the costs of inspection, evaluation, and testing. City Wide's ability to designate and mandate specific suppliers gives it significant control over the supply chain and operational standards of its franchises.