Which sections of the City Wide Franchise Agreement address the franchisee's obligations regarding pre-opening purchases and leases?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 28–29)
What This Means (2025 FDD)
Based on the 2025 City Wide Franchise Disclosure Document, Section 7 of the Franchise Agreement outlines the franchisee's obligations regarding pre-opening standards. Specifically, it states that prior to opening the franchised business, the franchisee must comply with all of City Wide's pre-opening standards and specifications. This implies that franchisees are responsible for ensuring that their business premises meet the franchisor's requirements before commencing operations.
Section 7.1 requires the franchisee to commence operation of the Franchised Business not later than one hundred twenty (120) calendar days after the execution and acceptance of this Agreement. Franchisees must also 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.
While the provided excerpts do not explicitly detail obligations for pre-opening purchases and leases, the requirement to meet pre-opening standards suggests that franchisees may need to purchase specific equipment, supplies, or lease a suitable location. A prospective franchisee should seek clarification from City Wide regarding the specific nature of these pre-opening standards, including any required purchases or leasehold improvements, to fully understand the initial investment needed to launch the franchise.