What rights does City Wide reserve if a Cyber Event occurs?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will exert its best efforts to protect each Technology System against a cyber event including any claims related to data breach, identify theft or theft of personal information ("Cyber Event").
If a Cyber Event occurs, City Wide reserves the right, but shall not have any obligation, to perform and/or control and/or cause its third-party consultants to perform and/or control all aspects of the response to the Cyber Event including, without limitation, the investigation, containment and resolution of the Cyber Event and all communications.
City Wide's control of the response to a Cyber Event shall not create any liability for City Wide or additional rights for Franchisee, entitle Franchisee to damages or relieve Franchisee of Franchisee's indemnification obligations under Section 7.
Franchisee shall reimburse City Wide for all of City Wide's out-of-pocket costs and expenses incurred in responding to and remedying any Cyber Event if such Cyber Event is conclusively determined to have been caused solely by Franchisee or directly related to Franchisee's Franchised Business operations.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide reserves specific rights, but not obligations, in the event of a Cyber Event affecting a franchisee's business. A Cyber Event includes any claims related to data breach, identity theft, or theft of personal information.
Specifically, City Wide has the right to perform, control, or have its third-party consultants perform or control all aspects of the response to the Cyber Event. This includes the investigation, containment, resolution, and all related communications. However, City Wide's control does not create any liability for City Wide, grant additional rights to the franchisee, entitle the franchisee to damages, or relieve the franchisee of their indemnification obligations as outlined in Section 7 of the franchise agreement.
Furthermore, the franchisee is responsible for reimbursing City Wide for all out-of-pocket costs and expenses incurred by City Wide in responding to and remedying any Cyber Event, but only if the Cyber Event is conclusively determined to have been caused solely by the franchisee or directly related to the franchisee's business operations. The franchisee is also expected to exert its best efforts to protect each Technology System against a cyber event.