Does the Successor Addendum specify any deadlines related to the agreement with City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
shall commence on the expiration of the Initial Term or the immediately preceding Successor Term and will continue until the end of the Successor Term.
- 2.2.2 Upon the expiration of the second Successor Term, you will have no right to renew this Agreement or sign a new franchise agreement for a Successor Term unless we are required to grant you the right by the laws of the state of your Franchised Business location.
- 2.2.3 Any grant of a successor franchise is subject to the following terms and conditions being fully satisfied:
- (a) This Agreement is in full force and effect on the last day of any Term and has not expired;
- (b) Franchisee must give CITY WIDE written notice of Franchisee's desire to enter into a Successor Term not less than one (1) year before the expiration of the then-current Term; upon receipt of Franchise's notice, CITY WIDE will have sixty (60) days to respond to such request.
- 2.2.4 At least ninety (90) days before the Term is set to 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.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Successor Addendum outlines specific deadlines related to renewal and potential sale of the franchise. A franchisee seeking to renew for a Successor Term must provide City Wide with written notice of their intent no less than one year before the current term's expiration. Upon receiving this notice, City Wide has 60 days to respond.
Furthermore, at least 90 days before the term expires, City Wide will inspect the franchised business and its equipment, subsequently informing the franchisee of any required maintenance, refurbishing, renovations, remodeling, or equipment upgrades. The franchisee is then obligated to complete these upgrades at their own expense to City Wide's satisfaction, no later than 30 days after the term's expiration.
If a franchisee chooses not to enter into a Successor Franchise Agreement or fails to sign it before the term expires, they are required to sell their rights to the designated territory either to City Wide or a third-party buyer approved by City Wide. This sale must be finalized before the expiration of the current term. City Wide retains the right of first refusal in such a sale.