What specific business experience is City Wide looking for in a proposed transferee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
(51%) or more of the voting power in Franchisee or an Affiliated Company, or (2) the contractual power to designate a majority of the directors of Franchisee or an Affiliated Company.
- 13.3.2 Franchisee's eligibility for the Royalty Rebate Program will not be impacted by a Transfer permitted under Section 13.3. The Gross Sales generated during the calendar year in which a Transfer under Section 13.3 occurs will be calculated as if the Transfer under Section 13.3 did not occur.
- 13.4 Conditions for Transfer by Franchisee. If Franchisee, an Affiliated Company or an Owner desire to make a Transfer to a person or entity other than as described in Section 13.3 or 13.6, such person or entity must comply with the following terms, conditions, and procedures to effectuate a valid Transfer:
- 13.4.1 Franchisee will first notify CITY WIDE in writing of the proposed Transfer with a complete description of all terms of the proposed Transfer, including the prospective transferee's name, address, financial qualifications, and previous five (5) years' business experience.
- 13.4.2 The proposed transferee will then apply for a Franchised Business under the System and must meet all of CITY WIDE's then-current standards and requirements for becoming a franchisee.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, if a franchisee desires to transfer their franchise to another person or entity, the prospective transferee must meet City Wide's standards for becoming a franchisee. As part of the transfer conditions, the franchisee must notify City Wide in writing of the proposed transfer, including a complete description of all terms and the prospective transferee's name, address, financial qualifications, and previous five years of business experience.
City Wide retains the right to approve or disapprove the prospective transferee. City Wide will not unreasonably withhold approval of a transfer to a proposed transferee who is of good moral character and whose business experience and aptitude, financial resources, and other qualifications meet City Wide's then-current standards, so long as the franchisee is in full compliance with the Franchise Agreement at the time of the proposed transfer.
In effect, City Wide seeks to ensure that any new franchisee coming into the system via a transfer meets the same standards as a brand new franchisee. This protects the integrity of the City Wide brand and the interests of other franchisees. A prospective franchisee should inquire with City Wide about the specific types of business experience they value during the approval process.