What right does City Wide grant to the franchisee during the term of the Franchise Agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ort Center IT as a Service. You will sign an IT Services Agreement, which is attached to the Franchise Agreement.
ITEM 12 TERRITORY
Franchise Agreement
During the term of the Franchise Agreement, as long as you are not in material breach of the Franchise Agreement, CITY WIDE will grant you the right to operate one Franchised Business in a designated territory ("Designated Territory") (See Section 1.1 and Attachment B to the Franchise Agreement). There is no prescribed minimum area granted to you, as each Designated Territory is based upon various factors including population, density of population, whether the territory is categorized as residential or business, and other factors, including the number and density of office buildings in the proposed Designated Territory.
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.
You must establish your office for the Franchised Business ("Office") at a location ("Location") within your Designated Territory prior to the commencement of any business or promotional activities. You may not change the Location without CITY WIDE's approval. You must give CITY WIDE at least 30 days' prior written notice of any such change and CITY WIDE shall have 30 days within which to approve such Location and the proposed decor and signage. If CITY WIDE does not approve of such Location, decor or signage within such 30-day period, your request shall be deemed disapproved.
At a minimum, your Office must include telephone service dedicated to the Franchised Business which will be answered by an employee, telephone answering service or voice mail (or combination thereof) and which will take calls from customers or employees 24 hours a day (See Section 6.3 of the Franchise Agreement).
Source: Item 12 — TERRITORY (FDD pages 36–39)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, during the term of the Franchise Agreement, City Wide grants the franchisee the right to operate one franchised business in a designated territory, provided the franchisee is not in material breach of the agreement. The size and specific characteristics of the designated territory are determined by factors such as population, population density, and the concentration of office buildings.
The franchisee must establish an office within their designated territory before starting business or promotional activities and cannot change the location without City Wide's approval. City Wide requires a 30-day written notice for any location change, and City Wide has 30 days to approve the new location, decor, and signage. Failure to obtain approval within this period results in the request being deemed disapproved.
City Wide does not offer exclusive territories, meaning franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels controlled by City Wide. To maintain their designated territory, franchisees must meet an annual revenue per capita growth requirement, currently set at $0.20 per person per year, which may be adjusted annually based on the Consumer Price Index, with a maximum increase of 3%. Failure to meet this growth requirement may result in City Wide reducing the territory size, granting additional franchises within the territory, or terminating the Franchise Agreement, although the franchisee has up to one year to cure the breach.