Who is responsible for the expenses associated with relocating a City Wide Franchised Business to a Substitute Designated Territory?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
CITY WIDE will permit you to relocate your Franchised Business to an alternate territory within the same general vicinity ("Substitute Designated Territory"), which, at CITY WIDE's sole and absolute right, is a suitable location for the operation of the Franchised Business, if at the sole and absolute judgment of CITY WIDE, changes in the character of the Designated Territory are sufficiently detrimental to warrant relocation of the Franchised Business to the Substitute Designated Territory. CITY WIDE reserves the right to charge you a reasonable relocation fee as a condition of approval of any Substitute Designated Territory for the Franchised Business. Any such relocation will be at Franchisee's sole expense and CITY WIDE will have the right to charge Franchisee for any costs incurred by CITY WIDE, and a reasonable fee for its services, in connection with any such relocation of the Franchised Business.
Source: Item 12 — TERRITORY (FDD pages 36–39)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, if a franchisee relocates their Franchised Business to a Substitute Designated Territory, the franchisee is solely responsible for all expenses associated with the relocation. City Wide retains the right to approve the relocation and may charge a reasonable relocation fee.
Specifically, City Wide may relocate a franchise if changes in the character of the Designated Territory are sufficiently detrimental, in City Wide's judgment, to warrant relocation. While City Wide permits relocation to a Substitute Designated Territory, the franchisee bears the financial burden of this move.
In addition to the franchisee's expenses, City Wide has the right to charge the franchisee for any costs incurred by City Wide, and a reasonable fee for its services, in connection with the relocation. This means that the franchisee could be responsible for not only their own moving costs, but also for fees and costs assessed by City Wide for their involvement in the relocation process. This is a potentially significant expense that a franchisee should consider if their territory is at risk of becoming detrimental to their business.