factual

Does the Successor Addendum specify a date when the Franchisee entered into an agreement with City Wide?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

2.1 Initial Term. This Agreement will take effect on the date of execution of this Agreement ("Effective Date"). The initial term ("Initial Term") will expire on the tenth anniversary of the Effective Date, unless terminated according to Section 14 of this Agreement.

2.2 Successor Term.

Source: Item 22 — CONTRACTS (FDD page 65)

What This Means (2025 FDD)

According to the 2025 City Wide Franchise Disclosure Document, the Successor Addendum itself does not specify the date when the franchisee originally entered into an agreement with City Wide. However, Section 2.1 clarifies that the franchise agreement takes effect on the date of execution, referred to as the "Effective Date." This Initial Term extends until the tenth anniversary of the Effective Date, unless terminated earlier according to Section 14 of the agreement.

Section 2.2.1 outlines the possibility of entering into two consecutive five-year Successor Terms, commencing upon the expiration of the Initial Term or the preceding Successor Term. This implies that the Successor Addendum is linked to the original agreement's timeline but does not independently establish a new agreement date. The Successor Franchise Agreement, as stated in 2.2.9, will supersede the initial agreement.

While the Successor Addendum does not explicitly state the original agreement date, it is tied to the initial agreement through the concept of the Initial Term and subsequent Successor Terms. A prospective franchisee should refer to their original franchise agreement to determine the initial agreement date and understand how it relates to the terms of the Successor Addendum. The addendum modifies specific sections of the Successor Franchise Agreement, indicating that the original agreement's terms are still relevant unless explicitly changed.

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.