When does the SBA addendum to the City Wide Franchise Agreement automatically terminate?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
I understand that this authorization will remain in effect until I cancel it in writing, and I agree to notify City Wide Franchise Co, Inc in writing of any changes in my account information or termination of this authorization at least 15 days prior to the next billing date. If the above noted periodic payment dates fall on a weekend or holiday, I understand that the payment may be executed on the next business day. I understand that because this is an electronic transaction, these funds may be withdrawn from my account as soon as the above noted periodic transaction dates. In the case of an ACH Transaction being rejected for Non Sufficient Funds (NSF) I understand that City Wide Franchise Co, Inc may at its discretion attempt to process the charge again within 30 days, and agree to an additional $30 charge or the interest at the highest rate of interest then permitted by applicable law of the state where the Franchised Business is located for each day such amount is past due which will be initiated as a separate transaction from the authorized recurring payment. I acknowledge that the origination of ACH transactions to my account must comply with the provisions of U.S. law. I agree not to dispute this recurring billing with my bank so long as the transactions correspond to the terms indicated in this authorization form.
____ DATE
City Wide Franchise Company, Inc.-2011 UNIFORM FRANCHISE DISCLOSURE DOCUMENT
SIGNATURE
ATTACHMENT I TO THE FRANCHISE AGREEMENT SBA ADDENDUM
INSTRUCTIONS FOR USE OF SBA FORM 2462 ADDENDUM TO FRANCHISE AGREEMENT
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpts provided do not contain information regarding the automatic termination of the SBA addendum to the City Wide Franchise Agreement. The excerpts do mention an SBA Addendum, specifically 'ATTACHMENT I TO THE FRANCHISE AGREEMENT SBA ADDENDUM' and 'SBA Form 2462 (01-2018)', but do not detail the conditions under which it automatically terminates.
However, the excerpts do discuss termination conditions for other agreements. For example, the Accounting and Financial Services Agreement has an initial term and automatically renews for successive six-month terms unless terminated with 90 days written notice after the initial term. Similarly, another agreement has an initial term of 36 months, renewing automatically for 12-month terms unless terminated with six months' notice after the initial term. These examples highlight that City Wide agreements typically have defined terms and renewal processes, but the SBA addendum is not among them.
A prospective City Wide franchisee should ask the franchisor about the specific terms and conditions of the SBA addendum, including under what circumstances it would automatically terminate. This information is crucial for understanding the full scope of their contractual obligations and rights.