Does the Successor Addendum provide any exceptions to the agreement between City Wide and the franchisee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Standards of Operation. Section 7.1 of the Successor Franchise Agreement is deleted and replaced with the following:
- "(a) Permits and Certification. Franchisee shall obtain and maintain all appropriate permits, licenses and/or approvals from the appropriate government authorities which may be required to operate Franchisee's Franchised Business within the Designated Territory."
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- Standards of Operation. Section 7.2 of the Successor Franchise Agreement is deleted and replaced with the following:
"(b) Proof of Permits and Certification. Before executing this Agreement, Franchisee will, at Franchisee's expense, furnish CITY WIDE, for its approval, the following:
(i) Copies of all permits and certifications as may be required for the lawful operation of the Franchised Business, together with copies of any building inspection reports and certifications from all governmental authorities having jurisdiction over the Designated Territory and the Franchised Business showing that all necessary permits have been obtained and that all requirements for operation have been met."
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- Standards of Operation. The first sentence of Section 7.14 of the Successor Franchise Agreement is amended by deleting the following language:
- ", including but not limited to the initial training referred to in Section 4.1 of this Agreement"
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- Capitalized Terms**.** Capitalized terms not otherwise defined in this Successor Addendum shall have the same meaning as in the Successor Franchise Agreement.
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- Addendum Binding. This Successor Addendum will be binding upon and inure to the benefit of each party and to each party's respective successors and assigns.
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- 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.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Successor Addendum does provide specific exceptions and modifications to the Successor Franchise Agreement. The addendum explicitly states that certain sections of the Successor Franchise Agreement are deleted and replaced with new language. Specifically, Section 7.1 regarding Standards of Operation is replaced, focusing on the franchisee's responsibility to obtain and maintain all necessary permits, licenses, and approvals to operate the franchised business within their designated territory. Similarly, Section 7.2 is replaced, detailing the franchisee's obligation to provide City Wide with copies of all required permits and certifications before executing the agreement.
Additionally, the first sentence of Section 7.14 of the Successor Franchise Agreement is amended by removing language related to initial training. This indicates that certain initial training requirements may be waived or modified under the Successor Addendum. However, the addendum also clarifies that any capitalized terms not defined within the addendum itself will retain the same meaning as defined in the Successor Franchise Agreement.
The Successor Addendum emphasizes that, except for the specific changes outlined within it, all other terms, conditions, and provisions of the Successor Franchise Agreement will remain in full force and effect as originally written and signed. This ensures that while certain aspects of the agreement may be modified, the core obligations and responsibilities of both City Wide and the franchisee remain intact. This addendum is binding upon both parties and their respective successors and assigns, reinforcing its legal standing and enforceability.