Is the Successor Addendum related to a previous agreement between City Wide and the Franchisee?
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 the 2025 City Wide Franchise Disclosure Document, the Successor Addendum is related to a previous agreement between City Wide and the franchisee. Specifically, the franchisee must execute the Successor Addendum as part of the renewal process. This addendum is part of the new franchise agreement used by City Wide at the time of renewal, referred to as the Successor Franchise Agreement.
The Successor Franchise Agreement supersedes the original agreement, meaning the terms of the new agreement will replace those of the old one. These terms may differ, potentially including higher royalty and marketing fees. The franchisee must also pay a Successor Fee, which is fifty percent of the then-current initial franchise fee, instead of paying a full new initial franchise fee.
To be eligible for a Successor Term, the franchisee must not be in default of any existing agreements with City Wide or its affiliates and must have substantially complied with all terms and conditions of those agreements. The franchisee's operations must also be in full compliance with City Wide's standards and requirements, and all monetary obligations to City Wide must be satisfied. This ensures that only franchisees in good standing are offered the opportunity to renew their franchise agreement under the new terms.