Does the Successor Addendum mention any prohibited actions for the franchisee regarding City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
expire, CITY WIDE will inspect the Franchised Business and equipment and notify Franchisee of all required maintenance, refurbishing, renovating, remodeling, and equipment upgrades; Franchisee agrees to complete at Franchisee's expense and to the satisfaction of CITY WIDE, all such maintenance, refurbishing, renovating, remodeling and equipment upgrades no later than thirty (30) days after the respective Term expires.
- 2.2.5 Franchisee must not be in default of any provision of this Agreement, any amendment to this Agreement, or any other agreement between CITY WIDE or its respective subsidiaries or affiliates, and at all times Franchisee must have substantially complied with all the terms and conditions of this Agreement and any other agreements between the parties during the respective Terms, including but not limited to then current Annual Revenue Per Capita Growth requirement (See Section 6.5).
- 2.2.6 Franchisee's operation of the Franchised Business must be in full compliance with the standards, specifications, requirements, instructions set forth in this Agreement and in the Operating Manual of CITY WIDE.
- 2.2.7 Franchisee's operations under all other Franchise Agreements, if any, must be in full compliance with the standards, specifications, requirements, instructions set forth under all other Franchise Agreements and in the Operating Manual of CITY WIDE.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, several clauses within the Successor Franchise Agreement outline actions that could be considered prohibited if not adhered to. Specifically, the document emphasizes compliance with standards, specifications, and requirements detailed in both the agreement and the City Wide Operating Manual.
The Successor Addendum states that a franchisee must not be in default of any provision within the agreement, any amendments to it, or any other agreement with City Wide or its affiliates. Franchisees must also have substantially complied with all terms and conditions throughout their respective terms, including meeting the Annual Revenue Per Capita Growth requirement. Furthermore, the franchisee's operation must be in full compliance with the standards, specifications, requirements, and instructions set forth in the agreement and the City Wide Operating Manual.
Failure to meet monetary obligations to City Wide and its subsidiaries or affiliates, or failure to comply with City Wide's current criteria for operating a franchised business, including qualification and training requirements, would also constitute prohibited actions. These stipulations ensure that franchisees maintain operational and financial standards, protecting the brand and the network as a whole.
In essence, the Successor Addendum focuses on maintaining compliance and fulfilling obligations, and any deviation from these could be construed as a prohibited action leading to potential consequences as outlined in the franchise agreement.