What sections of the City Wide Franchise Agreement address compliance with standards and policies, as well as the Operating Manual?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Development Program. If Franchisee does not participate in the National Business Development Program or is unable to fully service a National Account in its Designated Territory, CITY WIDE, an affiliate, or a third party CITY WIDE designee (including another CITY WIDE franchisee) may provide the services necessary to fulfill a National Account in Franchisee's Designated Territory and Franchisee will not be entitled to any compensation in connection with the transaction; and
SECTION 7. Standards of Operation
Franchisee shall comply with all requirements contained in this Agreement, the Operating Manual and other written policies CITY WIDE supplies to Franchisee. Mandatory specifications, standards, operating procedures and rules CITY WIDE prescribes from time to time in the Operating Manual or otherwise communicated to Franchisee in writing will constitute provisions of this Agreement as if fully outlined in this Agreement. Any required standards set forth herein, the Operating Manual exist to protect CITY WIDE's interests in the System and the Marks and not to establish any control or duty to take control over those matters that are reserved to Franchisee. All references to this Agreement will include all such mandatory specifications, standards and operating procedures and rules. Franchisee's failure to comply with requirements set forth in this Agreement concerning quality and performance will constitute a material breach of and cause for termination of this Agreement. Franchisee will comply with the entire System including, but not limited to:
- 7.1 Commencing Operations. Franchisee will commence operation of the Franchised Business not later than one hundred twenty (120) calendar days after the execution and acceptance of this Agreement. Franchisee shall apply to all appropriate government authority for such permits, licenses and/or approvals which may be required to operate Franchisee's Franchised Business within the Designated Territory for Franchisee's Franchised Business within fourteen (14) calendar days after execution and acceptance of this Agreement. Such permits, licenses, and/or approvals may include, but not be limited to, a general contractor's license. Prior to the opening of the Franchised Business, Franchisee will have complied with all CITY WIDE's pre-opening standards and specifications. If for any reason Franchisee fails to commence operation as provided in this Agreement, such failure will be considered a default and CITY WIDE may terminate this Agreement.
- 7.2 Permits and Certification. Before commencing operation of the Franchised Business, Franchisee will, at Franchisee's expense, furnish CITY WIDE, for its approval, the following:
- 7.2.1 Copies of all permits and certifications as may be required for the lawful operation of the Franchised Business, together with copies of any building inspection reports and certifications from all governmental authorities having jurisdiction over the Designated Territory and the Franchised Business showing that all necessary permits have been obtained and that all requirements for operation have been met.
- 7.3 Condition and Appearance of Office; Right of Inspection. Franchisee will maintain the condition and appearance of the Office of the Franchised Business consistent with CITY WIDE standards, as set forth in the Operating Manual and otherwise in writing. Franchisee will maintain such premises as CITY WIDE may from time to time require to maintain or improve the appearance and efficient operation of the Franchised Business, including, but not limited to, replacement of worn out or obsolete fixtures and signs, and repair of the Location. If any time in CITY WIDE's judgment the general state of repair or the appearance of the premises of the Franchised Business or its equipment, fixtures, or signs does not meet CITY WIDE's standards, CITY WIDE will so notify Franchisee and specify the action Franchisee must take to correct such deficiency. If Franchisee fails or refuses to initiate within thirty (30) calendar days after receipt of such notice, and continues to fail to implement a bona fide program to complete any required maintenance, CITY WIDE will have the right, in addition to all other remedies, to enter upon the premises of the Franchised Business and effect such repairs, painting, maintenance or replacements of equipment, fixtures or signs on Franchisee's behalf and Franchisee will repay CITY WIDE the entire costs on demand. If Franchisee fails to make any such payments or remedy operational deficiencies, such failure will constitute a material breach of this Agreement and CITY WIDE may terminate this Agreement.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 28–29)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, several sections of the Franchise Agreement outline the franchisee's responsibilities regarding compliance with standards, policies, and the Operating Manual. Section 7, titled "Standards of Operation," mandates that franchisees adhere to all requirements outlined in the Franchise Agreement, the Operating Manual, and any other written policies provided by City Wide. This section emphasizes that the specifications, standards, operating procedures, and rules prescribed by City Wide in the Operating Manual or communicated in writing are integral to the Franchise Agreement. Failure to comply with these standards regarding quality and performance constitutes a material breach of the agreement and may lead to termination.
Section 8, titled "Confidential Operating Manual," further elaborates on the importance of the Operating Manual. It states that City Wide will provide franchisees with access to the current confidential Operating Manual, which contains mandatory specifications, standards, operating procedures, and rules. City Wide retains the right to modify the Operating Manual, provided that such modifications do not alter the franchisee's fundamental rights or require unreasonable additional capital investment. Franchisees must maintain the confidentiality of the Operating Manual, and failure to follow the specifications and standards outlined within it constitutes a material breach of the Franchise Agreement, potentially leading to termination if not cured within 30 days of written notice from City Wide.
Additional sections reinforce the franchisee's obligation to comply with City Wide's standards and policies. Section 1 emphasizes that operating the Franchised Business in conformity with the City Wide System requires strict adherence to these standards and policies, as they exist and as City Wide may modify them. Section 4.6, "Standards of Quality," requires franchisees to continually maintain the highest standards of quality, cleanliness, appearance, and service. Furthermore, section 2.2.6 states that the franchisee's operation of the Franchised Business must be in full compliance with the standards, specifications, requirements, and instructions set forth in the Agreement and the Operating Manual.