Can City Wide specify standards in writing outside of the Operating Manual?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
not participate in the National Business Development Program or is unable to fully service a National Account in its Designated Territory, CITY WIDE, an affiliate, or a third party CITY WIDE designee (including another CITY WIDE franchisee) may provide the services necessary to fulfill a National Account in Franchisee's Designated Territory and Franchisee will not be entitled to any compensation in connection with the transaction; and
SECTION 7. Standards of Operation
Franchisee shall comply with all requirements contained in this Agreement, the Operating Manual and other written policies CITY WIDE supplies to Franchisee. Mandatory specifications, standards, operating procedures and rules CITY WIDE prescribes from time to time in the Operating Manual or otherwise communicated to Franchisee in writing will constitute provisions of this Agreement as if fully outlined in this Agreement. Any required standards set forth herein, the Operating Manual exist to protect CITY WIDE's interests in the System and the Marks and not to establish any control or duty to take control over those matters that are reserved to Franchisee. All references to this Agreement will include all such mandatory specifications, standards and operating procedures and rules.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees must adhere to the standards outlined not only in the Operating Manual but also in any other written policies provided by City Wide. These mandatory specifications, standards, operating procedures, and rules, whether in the Operating Manual or communicated in writing, are considered part of the Franchise Agreement. This means that City Wide has the ability to set and modify standards through various written means, not solely through the Operating Manual.
This flexibility allows City Wide to adapt its standards more readily to changing market conditions or to address specific issues that may arise. For a franchisee, this implies a need to stay informed of all communications from City Wide, as these could contain new or updated standards that must be followed. Failure to comply with these standards, regardless of where they are documented, can be considered a breach of the Franchise Agreement and could lead to termination.
City Wide also retains the right to inspect the franchisee's office and customer sites to ensure compliance with these standards. If deficiencies are found, City Wide will notify the franchisee and specify the corrective actions needed. Franchisees are typically given a timeframe to initiate and implement a plan to correct these deficiencies, and failure to do so could allow City Wide to take corrective action themselves at the franchisee's expense.
Prospective franchisees should be aware that City Wide's standards extend to various aspects of the business, including the condition and appearance of the office, cleanliness and safety practices, and the quality of services provided. Franchisees are also required to use approved suppliers for fixtures, equipment, and supplies, as outlined in the Operating Manual or other written communications from City Wide.