Does City Wide have any restrictions on assigning its contract?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
tain important provisions of the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this disclosure document.**
FRANCHISE AGREEMENT
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | reasonable attorneys’ fees, incurred by CITY WIDE subsequent to termination or expiration in connection with obtaining injunctive or other relief under the Franchise Agreement; provide all signage to CITY WIDE; and take further action as may be required by the Operating Manual or reasonably requested by CITY WIDE; and, if due to your default, forfeit any royalty rebate. | |
| j. Assignment of contract by | Section 13 | No restriction on CITY WIDE’s right to assign. |
| Franchisor | ||
| k. “Transfer” by you – definition | Section 13 | Includes transfer of contract or assets or change in ownership. |
| l. Franchisor’s approval of transfer | Section 13 | CITY WIDE has the right to approve all transfers, |
| by you | but will not unreasonably withhold approval. | |
| m. Conditions for Franchisor’s approval of transfer | Section 13 | You must ask CITYWIDE at least 60 days before to approve a transfer; you must pay a Transfer Fee equal to $25,000 and pay any applicable third-party broker fee; you must be in compliance with the Franchise Agreement and Operating Manual; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–47)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide, as the franchisor, faces no restrictions on assigning its contract. However, franchisees looking to transfer their interest in the City Wide franchise face several requirements. The FDD states that a transfer includes the transfer of the contract, assets, or a change in ownership.
Before a franchisee can transfer their franchise, they must request approval from City Wide at least 60 days in advance. The franchisee is also responsible for paying a $25,000 transfer fee, along with any applicable third-party broker fees.
Furthermore, the franchisee must be in compliance with the Franchise Agreement and Operating Manual. The prospective transferee must meet City Wide's standards, agree to make any required upgrades, sign the current form of the franchise agreement, and pay all required fees, including initial franchise fees. City Wide also retains the right of first refusal to acquire the franchisee's business if they propose to sell it.