factual

Who is responsible for the expenses related to the City Wide Telephone Line?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

These telephone numbers, lines and the services related thereto (collectively, "Telephone Line") will be the sole and exclusive property of CITY WIDE. Franchisee shall always be solely responsible for any expenses and debts incurred with respect to the Telephone Line. Franchisee does hereby irrevocably convey, assign and transfer to CITY WIDE all the rights relative to the termination and/or changing of the Telephone Line should the franchise arrangement and/or relationship between the parties cease at any time for any reason. Additionally, Franchisee does hereby irrevocably convey, assign and transfer to CITY WIDE all the rights to place forwarding instructions upon the Telephone Line to whatever numbers and to any persons CITY WIDE desires, should the franchise arrangement and/or relationship cease at any time for any reason. This includes the assignment of the Telephone Line or forward instructions if Franchisee is using a Telephone Line tied to a cellular, mobile or other portable phone to operate the Franchised Business. All expenses in terminating, changing and forwarding the Telephone Line always times be the sole responsibility of Franchisee.

Source: Item 22 — CONTRACTS (FDD page 65)

What This Means (2025 FDD)

According to City Wide's 2025 Franchise Disclosure Document, the franchisee is solely responsible for all expenses and debts related to the City Wide Telephone Line. This includes the initial costs of establishing the phone line, ongoing service fees, and any expenses incurred for termination, changes, or forwarding of the Telephone Line.

The Telephone Line, as defined in the FDD, includes the telephone numbers, lines, and related services, and it must be available 24 hours a day with a specific reference identifying it as associated with City Wide. Importantly, the Telephone Line is the sole and exclusive property of City Wide, but the franchisee bears the financial responsibility for it.

This arrangement means that while City Wide owns the Telephone Line and can control its disposition (termination, forwarding) if the franchise relationship ends, the franchisee is responsible for all associated costs. This is a potentially significant expense for the franchisee, who needs to factor in these costs when assessing the overall financial viability of the franchise. The franchisee also irrevocably conveys and transfers to City Wide all rights relative to the termination or changing of the Telephone Line should the franchise arrangement cease for any reason.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.