What is the significance of the 'Open Date' in relation to the City Wide Business Development Center Agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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".
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the 'Open Date' is a key factor in determining the 'Effective Date' of the Business Development Center Agreement. For new City Wide franchisees, the Business Development Center services will commence on the date the franchised business opens, also known as the 'Open Date,' or as otherwise agreed upon by both parties. This 'Open Date' then becomes the 'Effective Date' for the agreement.
For existing City Wide franchisees who wish to engage City Wide for Business Development Center services, the 'Effective Date' is the date the services are set to begin. The agreement's term length differs based on whether the franchisee is new or existing. For new franchisees, the initial term is twelve months, while for existing franchisees, it is six months, unless terminated earlier.
In summary, the 'Open Date' is a critical starting point for new City Wide franchisees utilizing the Business Development Center services, as it directly influences when the services begin and the duration of the initial agreement term. Prospective franchisees should clarify with City Wide how the 'Open Date' is officially determined and documented to ensure alignment on the start of these services.