What section of the City Wide Business Development Center Agreement discusses termination?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Business Development Center Agreement ("Agreement") dated is entered into by and between City Wide Franchise Company, Inc. ("City Wide") and ("Franchisee") |
|---|
| (City Wide and Franchisee, collectively "Parties" or individually "Party"). |
| RECITALS |
| A. |
| City |
| Wide |
| and |
| Franchisee |
| are |
| parties |
| to |
| that |
| certain |
| Franchise |
| Agreement |
| dated |
| ("Franchise |
| Agreement"),[as amended] |
| pursuant |
| to |
| which |
| Franchisee |
| is |
| granted |
| the |
| right |
| to |
| operate |
| a |
| City |
| Wide franchise in the Designated Territory, as defined in the Franchise Agreement ("Franchised Business"). |
| B. |
| Franchisee desires to enlist the Services (defined below) of City Wide's Business Development |
| Center for the purpose of |
| assisting in |
| the |
| prospecting and developing of local City |
| Wide clientele. Services will be |
| provided starting as of the date the Franchised Business opens for business ("Open Date" or as otherwise agreed |
| to by the Parties) hereinafter the "Effective Date". |
| C. |
| City Wide desires to provide said Services to Franchisee and Franchisee wishes to engage City |
| Wide to provide said Services, subject to the terms and conditions of this Agreement. |
| In consideration of the foregoing premises and the mutual covenants and agreements contained herein, the Parties |
| hereby agree as follows: |
| AGREEMENT |
| 1. |
| Services. |
| Subject to the terms of this Agreement and based on the information provided to City |
| Wide by Franchisee, City Wide agrees to provide various business development services to Franchisee, pursuant to |
| the selected package and/or selected services on the attached Business Development Services Packages ("Exhibit |
| A") attached hereto and made a part hereof (collectively, "Services"). |
| 2. |
| Term. |
| a. |
| NEW. Any new Franchisee signing a new Franchise Agreement for a new Franchised Business |
| is a new Franchisee to City Wide, the term of this Agreement will begin |
| on |
| the |
| "Effective |
| Date" |
| and |
| will |
| continue |
| for |
| a |
| period |
| of |
| twelve |
| (12) |
| months, |
| unless |
| terminated sooner in accordance |
| with Section 3 of this Agreement ("New Franchisee Initial Term"). |
| b. |
| EXISTING. If Franchisee |
| is an existing Franchise of |
| City |
| Wide |
| and |
| wishes |
| to |
| engage |
| City |
| Wide |
| for |
| the |
| BDC Services, the term of this Agreement will begin on date services to begin, the |
| ("Effective Date") and will continue for a period of six (6) months, unless terminated sooner |
| in accordance with Section 3 of this Agreement ("Existing Franchisee |
| Initial |
| Term"). |
Term may collectively be referred to as "Initial Term". This Agreement will renew automatically for a period of
- For ease of reference herein, the New Franchisee Initial Term and the Existing Franchisee Initial
six (6) months (collectively, each six month term, "Successor Term"), unless terminated in accordance with Section 3 of this Agreement.
-
- Termination.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 FDD, Section 3 of the City Wide Business Development Center Agreement outlines the conditions for termination. For new franchisees, the agreement lasts for twelve months from the effective date, while for existing franchisees, it lasts for six months, unless terminated earlier as per Section 3.
After the initial term, either City Wide or the franchisee can terminate the agreement by providing 90 days' written notice to the other party. The termination becomes effective on the 90th day following the notice delivery, contingent upon acceptance by both parties. Any bonuses or commissions earned by the franchisee during the agreement's term remain payable according to Exhibit B, even after termination.
City Wide retains the right to terminate the Business Development Center Agreement if the Franchise Agreement is terminated, without incurring any liability to the franchisee. This provision ensures that the Business Development Center services are aligned with the status of the franchise agreement. Prospective franchisees should carefully review Section 3 and Exhibit B to fully understand the termination conditions and financial obligations related to the Business Development Center Agreement.