Does the Successor Addendum specify any obligations for City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
budgeting, among other services, for the benefit of Franchisee and the Franchised Business. 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.
Services Department for the purpose of assisting in the financial reporting, bookkeeping, collecting, and
In consideration of the foregoing premises and the mutual covenants and agreements contained herein, the Parties hereby agree as follows:
AGREEMENT
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- Services. Subject to the terms of this Agreement and based on the information provided to City Wide by Franchisee, City Wide agrees to provide the accounting and financial services to Franchisee, pursuant to the selected accounting package and/or selected accounting services on the attached Accounting and Financial Services Packages ("Exhibit A") attached hereto and made a part hereof (collectively, "Services"). The provision of Services by City Wide will in no way imply or be interpretated that City Wide is in any way responsible for Franchisee's debts, obligations and other liabilities. It is understood by Franchisee that, in the event there is not sufficient cash flow to meet Franchisee's financial obligations, City Wide is in no way obligated to contribute funds to Franchisee's account nor pay Franchisee's financial obligations.
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City Wide may sell, transfer, or assign this Agreement at any time and thereby be released from any further obligations to Franchisee.
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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.
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 some obligations for City Wide. Specifically, City Wide agrees to provide accounting and financial services to the franchisee based on the selected accounting package detailed in Exhibit A. This service is subject to the terms and conditions of the agreement. However, the provision of these services does not imply that City Wide is responsible for the franchisee's debts, obligations, or other liabilities.
Furthermore, the document states that City Wide is not obligated to contribute funds to the franchisee's account or pay the franchisee's financial obligations if there is insufficient cash flow. This clarifies the extent of City Wide's commitment to providing financial services without assuming financial responsibility for the franchisee's business operations.
City Wide also has the right to sell, transfer, or assign the Franchise Agreement at any time, which releases them from any further obligations to the franchisee. This clause provides City Wide with flexibility in managing its franchise network but could potentially impact the franchisee if the agreement is transferred to a new entity. The Successor Addendum also states that it will be binding upon and inure to the benefit of each party and to each party's respective successors and assigns.