factual

Does the Successor Addendum provide any details about the recitals related to the agreement with City Wide?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

ective successors and assigns.

    1. No Further Changes. Except as specifically provided in this Addendum, all of the terms, conditions and provisions of the Successor Franchise Agreement will remain in full force and effect as originally written and signed.

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first written above.

CITY WIDE FRANCHISE COMPANY, INC. FRANCHISEE:

By: By:
Name: Name:
Title: Title:

ATTACHMENT K TO THE FRANCHISE AGREEMENT BUSINESS DEVELOPMENT CENTER AGREEMENT

ATTACHMENT K TO

FRANCHISE AGREEMENT

CITY WIDE FRANCHISE COMPANY, INC.

BUSINESS DEVELOPMENT CENTER AGREEMENT

This Business Development Center Agreement ("Agreement") dated is entered into by and between City Wide Franchise Company, Inc. ("City Wide") and ("Franchisee")
(City Wide and Franchisee, collectively "Parties" or individually "Party").
RECITALS
A.
City
Wide
and
Franchisee
are
parties
to
that
certain
Franchise
Agreement
dated
("Franchise
Agreement"),[as amended]
pursuant
to
which
Franchisee
is
granted
the
right
to
operate
a
City
Wide franchise in the Designated Territory, as defined in the Franchise Agreement ("Franchised Business").
B.
Franchisee desires to enlist the Services (defined below) of City Wide's Business Development
Center for the purpose of
assisting in
the
prospecting and developing of local City
Wide clientele. Services will be
provided starting as of the date the Franchised Business opens for business ("Open Date" or as otherwise agreed
to by the Parties) hereinafter the "Effective Date".
C.
City Wide desires to provide said Services to Franchisee and Franchisee wishes to engage City
Wide to provide said Services, subject to the terms and conditions of this Agreement.
In consideration of the foregoing premises and the mutual covenants and agreements contained herein, the Parties
hereby agree as follows:
AGREEMENT
1.
Services.
Subject to the terms of this Agreement and based on the information provided to City
Wide by Franchisee, City Wide agrees to provide various business development services to Franchisee, pursuant to
the selected package and/or selected services on the attached Business Development Services Packages ("Exhibit
A") attached hereto and made a part hereof (collectively, "Services").
2.
Term.
a.
NEW. Any new Franchisee signing a new Franchise Agreement for a new Franchised Business
is a new Franchisee to City Wide, the term of this Agreement will begin
on
the
"Effective
Date"
and
will
continue
for
a
period
of
twelve
(12)
months,
unless
terminated sooner in accordance
with Section 3 of this Agreement ("New Franchisee Initial Term").
b.
EXISTING. If Franchisee
is an existing Franchise of
City
Wide
and
wishes
to
engage
City
Wide
for
the
BDC Services, the term of this Agreement will begin on date services to begin, the
("Effective Date") and will continue for a period of six (6) months, unless terminated sooner
in accordance with Section 3 of this Agreement ("Existing Franchisee
Initial
Term").

Term may collectively be referred to as "Initial Term". This Agreement will renew automatically for a period of

  1. For ease of reference herein, the New Franchisee Initial Term and the Existing Franchisee Initial

six (6) months (collectively, each six month term, "Successor Term"), unless terminated in accordance with Section 3 of this Agreement.

    1. Termination. At any time after the Initial Term, either Party may terminate this Agreement upon providing ninety (90) days written notice to the other Party, with the termination effective on the ninetieth day from date of delivery of the written notice, and acceptance by the Parties. Franchisee hereby acknowledges and accepts that any bonuses and/or commissions earned during the Term of the Agreement are still owed and payable pursuant to Exhibit B.

Source: Item 22 — CONTRACTS (FDD page 65)

What This Means (2025 FDD)

According to the 2025 City Wide Franchise Disclosure Document, the Successor Addendum does not provide specific details about the recitals related to the agreement with City Wide. However, the FDD does include recitals in other agreements. For example, the Business Development Center Agreement includes recitals A, B, and C, which outline the relationship between City Wide and the franchisee, the franchisee's desire to enlist the services of City Wide's Business Development Center, and City Wide's desire to provide these services. Similarly, the IT Services Agreement contains recitals A, B, C, and D, which describe the franchise agreement, City Wide's software, IT services, and the franchisee's desire to obtain these services from City Wide.

Additionally, the Non-Compete Agreement includes recitals A, B, and C, which acknowledge the Franchise Agreement, incorporate the recitals, definitions, acknowledgments, and warranties from the Franchise Agreement, and express the desire to enter into a Non-Compete Agreement. These recitals are incorporated by reference from the Franchise Agreement.

While the Successor Addendum itself does not detail specific recitals, it's important to note that Section 2.2.9 states that the franchisee must execute the form of franchise agreement being used by City Wide at the time of renewal, including the Successor Addendum, which will supersede the existing agreement. This Successor Franchise Agreement may have different terms, including potentially higher Royalty and Marketing Fees. Therefore, prospective franchisees should carefully review the Successor Franchise Agreement and any associated recitals to understand their obligations and rights upon renewal.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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