Is City Wide responsible for the franchisee's debts and obligations under the accounting services agreement?

According to City Wide's 2025 Franchise Disclosure Document, City Wide is not responsible for the franchisee's debts and obligations under the accounting services agreement. The agreement explicitly states that City Wide's provision of services does not imply any responsibility for the franchisee's debts, obligations, or other liabilities. Furthermore, City Wide is not obligated to contribute funds to the franchisee's account or pay the franchisee's financial obligations if there is insufficient cash flow. This underscores that the franchisee bears the ultimate financial responsibility for their business.

This aspect of the agreement is crucial for prospective franchisees to understand. While City Wide provides accounting and financial services, the franchisee remains fully accountable for managing their finances and ensuring all debts and obligations are met. This is a standard arrangement in franchising, where franchisees operate as independent business owners.

The agreement also specifies that the franchisee is responsible for providing City Wide with all necessary financial information and data. City Wide is not liable for inaccurate financial reports if the franchisee provides inaccurate data. This highlights the importance of the franchisee's role in maintaining accurate records and providing timely information to City Wide to facilitate effective accounting services. Therefore, franchisees must be diligent in their financial record-keeping and transparent in their communications with City Wide to avoid potential issues.