What is the significance of Section 3 in the City Wide Business Development Center Agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
At any time after the Initial Term, either Party may terminate this Agreement upon providing ninety (90) days written notice to the other Party, with the termination effective on the ninetieth day from date of delivery of the written notice, and acceptance by the Parties.
Franchisee hereby acknowledges and accepts that any bonuses and/or commissions earned during the Term of the Agreement are still owed and payable pursuant to Exhibit B.
City Wide will have the right, without incurring any liability to Franchisee, by notice in writing effective when given, to terminate this Agreement in the event the Franchise Agreement is terminated by City Wide.
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 under which the agreement can be terminated. For both new and existing franchisees, the initial term of the agreement is either twelve months for new franchisees or six months for existing ones, but it can be terminated sooner according to Section 3.
Specifically, after the initial term, either City Wide or the franchisee can terminate the agreement by providing a 90-day written notice to the other party. The termination becomes effective on the 90th day following the delivery of the notice, assuming both parties acknowledge and accept the termination. The franchisee is still obligated to pay any bonuses or commissions earned during the term of the agreement, as detailed in Exhibit B, even after termination.
City Wide also retains the right to terminate the Business Development Center Agreement immediately if the Franchise Agreement itself is terminated. This clause protects City Wide by allowing them to discontinue business development services if the franchise relationship ends. This section ensures that both parties have a clear understanding of how and when the Business Development Center Agreement can be terminated, providing a framework for ending the relationship while addressing ongoing financial obligations.