What is a 'Substitute Designated Territory' for a City Wide franchise?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
CITY WIDE will permit you to relocate your Franchised Business to an alternate territory within the same general vicinity ("Substitute Designated Territory"), which, at CITY WIDE's sole and absolute right, is a suitable location for the operation of the Franchised Business, if at the sole and absolute judgment of CITY WIDE, changes in the character of the Designated Territory are sufficiently detrimental to warrant relocation of the Franchised Business to the Substitute Designated Territory. CITY WIDE reserves the right to charge you a reasonable relocation fee as a condition of approval of any Substitute Designated Territory for the Franchised Business. Any such relocation will be at Franchisee's sole expense and CITY WIDE will have the right to charge Franchisee for any costs incurred by CITY WIDE, and a reasonable fee for its services, in connection with any such relocation of the Franchised Business.
Source: Item 12 — TERRITORY (FDD pages 36–39)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a 'Substitute Designated Territory' refers to an alternate territory within the same general vicinity where a franchisee may relocate their City Wide business. This relocation is contingent upon City Wide's approval, which is granted if City Wide determines that changes in the original Designated Territory are significantly detrimental to the business.
Relocating to a Substitute Designated Territory is not guaranteed and is subject to City Wide's sole discretion. If approved, the franchisee is responsible for all relocation expenses. Additionally, City Wide reserves the right to charge a reasonable relocation fee and any costs incurred by City Wide for its services related to the relocation.
This clause protects City Wide by allowing them to ensure that franchise locations remain viable. For a prospective franchisee, it means that while there is a possibility of relocation if the original territory declines, it is not an automatic right and comes with potential costs. Franchisees should carefully consider the factors that could impact their Designated Territory and factor in potential relocation expenses.