Does City Wide have the right to charge a relocation fee for 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, City Wide does reserve the right to charge a relocation fee if a franchisee wishes to move to a Substitute Designated Territory. City Wide may allow a franchisee to relocate their franchised business to a Substitute Designated Territory within the same general vicinity if City Wide believes changes to the original Designated Territory are detrimental enough to warrant a relocation. However, the approval of any Substitute Designated Territory is at City Wide's sole and absolute discretion.
City Wide can charge a reasonable relocation fee as a condition of approving the move to a Substitute Designated Territory. The franchisee is responsible for covering all expenses associated with the relocation. Additionally, City Wide has the right to charge the franchisee for any costs it incurs, along with a reasonable fee for its services related to the relocation.
This means that while City Wide may permit relocation under certain circumstances, franchisees should be prepared to incur potentially significant costs. Franchisees should carefully consider the financial implications before requesting a relocation and factor in the possibility of a relocation fee charged by City Wide, as well as covering City Wide's costs and fees for the relocation services.