What specific costs are included when City Wide effects painting on behalf of the City Wide franchisee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, if a franchisee fails to maintain the appearance and condition of their office according to City Wide standards, City Wide can take action to correct the deficiency. Specifically, if the franchisee does not begin to correct the deficiency within 30 calendar days after receiving notice, City Wide has the right to enter the premises and make the necessary repairs, painting, maintenance, or replacements.
The franchisee is then responsible for repaying City Wide the entire costs incurred for these actions upon demand. This means the franchisee will have to cover all expenses City Wide incurs to bring the office up to standard.
Failure to make these payments or correct operational deficiencies constitutes a material breach of the Franchise Agreement, potentially leading to termination of the agreement. This clause ensures that all City Wide franchise locations maintain a consistent brand image, but it also places a financial burden on the franchisee to ensure ongoing compliance with City Wide's standards.