What specific actions are considered 'repairs' that City Wide can effect on behalf of the franchisee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee 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. Except for
those repairs that would constitute a public health or safety hazard, or are required by any governmental agency, any such remodeling requirement will be imposed only in a nondiscriminatory manner upon (i) all comparably situated CIT
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, if a franchisee's business premises or its equipment, fixtures, or signs do not meet City Wide's standards, City Wide will notify the franchisee and specify the corrective actions needed. Should the franchisee fail to initiate corrections within 30 days and continue to neglect implementing a program to complete the required maintenance, City Wide reserves the right to enter the premises and perform the necessary repairs, painting, maintenance, or replacements on the franchisee's behalf. The franchisee is then obligated to repay City Wide the entire cost upon demand.
This provision allows City Wide to ensure brand consistency and maintain standards across all franchise locations. However, it also places a financial burden on the franchisee if they fail to keep their premises in good condition. The franchisee is responsible for the costs incurred by City Wide for these repairs, which could impact their profitability.
There is an exception for repairs that constitute a public health or safety hazard or are required by a governmental agency. Any remodeling requirements exceeding $25,000 will only be mandated if there is sufficient time remaining in the franchise term to amortize or depreciate the expenditure under the Internal Revenue Code. This offers some protection to the franchisee against large, unrecoverable capital expenditures late in their franchise term. Failure to make payments for repairs or remedy operational deficiencies constitutes a material breach of the agreement and may lead to termination of the agreement.