What does City Wide's 'System' encompass for establishing and conducting the Franchised Business?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisee requests additional on-site assistance or supervision CITY WIDE may charge Franchisee a fee, as outlined in the Operating Manual. Franchisee acknowledges and agrees that any evaluation or inspection conducted by CITY WIDE under this section is not intended to exercise, and does not constitute, control over Franchisee's day-to-day operation of the Franchised Business or to assume any responsibility for Franchisee's obligations under this Agreement.
4.3 Specifications. Specifications for fixtures, equipment, signs, furnishings, and other components and accessories for the Franchised Business which Franchisee will purchase at Franchisee's expense for Franchisee to use in conducting the Franchised Business at the Location will be as outlined in the Operating Manual. CITY WIDE may from time to time provide Franchisee with a comprehensive list of established sources of equipment and supplies necessary for the operation of a Franchised Business (See Section 7.9).
4.4 Continuing Advisory Assistance. CITY WIDE will provide continuing advisory assistance to Franchisee in the operation of the Franchised Business, as CITY WIDE at its sole and absolute right determines is necessary. CITY WIDE may also provide Franchisee newsletters and bulletins from time to time.
4.5 Confidential Operating Manual. Upon execution of this Agreement, CITY WIDE will provide an electronic copy of, or electronic access to, the confidential Operating Manual which will govern the operation of the Franchised Business at the Location. CITY WIDE may make changes and additions from time to time to the Operating Manual which will be available electronically to Franchisee.
4.6 Standards of Quality. Franchisee will continually maintain the highest standards of quality, cleanliness, appearance, and service provided by the System, thereby maintaining the public image and reputation of the System and the demand for the products and services provided under this Agreement, and to that end:
4.6.1 CITY WIDE may from time to time conduct evaluations of the Franchised Business at the Office and at Franchisee's customer sites, and evaluations of the services rendered, and the personnel Franchisee employs.
4.6.2 CITY WIDE will provide Franchisee advice concerning operating problems, new techniques and administrative, bookkeeping, accounting and operating methods disclosed by reports to or inspections made by CITY WIDE as CITY WIDE at its sole and absolute right, may deem appropriate; and
4.6.3 CITY WIDE will help, as CITY WIDE at its sole and absolute right may deem reasonably required, including advice and guidance with respect to new and improved methods of operation or business procedures developed by CITY WIDE, use of the Operating Manual, management material, promotional material, advertising forms, updates to Software, and the Marks.
4.7 No Responsibility or Liability. CITY WIDE will not, by any approvals, advice, or services provided to Franchisee, assume responsibility or liability to Franchisee or to any third party to which it would not otherwise be subject.
4.8 National Meetings. CITY WIDE may offer to conduct national or regional franchisee meetings ("National Meetings") as outlined in Section 7.24 below.
4.9 Franchise Advisory Council. CITY WIDE has established a franchise advisory council ("Franchise Advisory Council") to which Franchisee may be elected. All franchisees within CITY WIDE's franchise system share in the expenses related to the Franchise Advisory Council. Amounts and expenditures may vary from time to time due to variations in FAC costs as determined by CITY WIDE. Accordingly, regardless of whether Franchisee is elected to the Franchise Advisory Council, Franchisee will be required to pay Franchisee's proportionate share of travel and lodging costs of elected Franchise Advisory Council members. CITY WIDE will invoice Franchisee for Franchisee's share of such costs.
4.10 Review of Promotional and Advertising Materials. CITY WIDE must review all promotional and advertising materials Franchisee intends to use before Franchisee uses them under the provisions of Section 10 of this Agreement. As described in Section 10 of this Agreement, CITY WIDE agrees to provide to Franchisee reasonable amounts of such advertising and promotional materials as CITY WIDE has prepared and used in connection with other Businesses in the System owned or licensed by CITY WIDE, at a price equal to CITY WIDE's cost, including allocable overhead, plus ten percent (10%).
SECTION 5. Marks
5.1 Franchisee acknowledges that CITY WIDE is the licensee of the Marks found in Attachment C to this Agreement**.** Franchisee further acknowledges that CITY WIDE has disclosed fully to Franchisee that the Marks licensed hereunder are owned by CITY WIDE FRANCHISE HOLDING COMPANY, INC., an affiliate (See Section 13.2) of CITY WIDE. Franchisee additionally acknowledges that CITY WIDE has disclosed fully to Franchisee that CITY WIDE has the exclusive right throughout the United States, Canada and Mexico, under its License Agreement with CITY WIDE FRANCHISE HOLDING COMPANY, INC., to sub-license the use of the Marks for use as outlined in this Agreement. Franchisee further acknowledges that Franchisee's right to use the Marks is derived solely from this Agreement and is limited to Franchisee's conduct of the Franchised Business under and in compliance with this Agreement and all applicable standards, specifications, and operating procedures CITY WIDE prescribes from time to time during the term of the franchise. Any unauthorized use of the Marks by Franchisee is a breach of this Agreement and an infringement of the rights of CITY WIDE in and to the Marks. Franchisee acknowledges that all Franchisee's usage of the Marks and any goodwill established by
Franchisee's use of the Marks will inure to the exclusive benefit of CITY WIDE and that this Agreement does not confer on Franchisee any goodwill or other interests in the Marks. Franchisee will not, at any time during the Term of this Agreement or after its termination or expiration, contest the validity or ownership of any of the Marks or assist any other person in contesting the validity or ownership of any of the Marks. All provisions of this Agreement applicable to the Marks also apply to any additional trademarks, service marks, and commercial symbols CITY WIDE authorizes Franchisee to use during the Term of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 FDD, the City Wide system encompasses several key components designed to guide franchisees in establishing and operating their businesses. These include specifications for fixtures, equipment, signs, furnishings, and other components outlined in the Operating Manual, which franchisees must purchase at their own expense. City Wide may also provide franchisees with a list of established equipment and supply sources. The system mandates adherence to quality standards, use of proprietary information, and the selling of designated service and product lines. Compliance with these standards and policies is crucial for maintaining the goodwill associated with the City Wide brand.
City Wide provides ongoing advisory assistance to franchisees, offering newsletters and bulletins as needed. The confidential Operating Manual governs the franchised business's operation and is subject to changes and additions made available electronically. Franchisees are expected to maintain high standards of quality, cleanliness, appearance, and service to uphold the system's public image. City Wide may conduct evaluations of the franchised business, customer sites, services, and personnel, offering advice on operating problems, new techniques, and administrative methods.
Furthermore, City Wide offers assistance in opening the franchised business, including help with hiring personnel and developing promotional programs. Franchisees must employ trained individuals and may be required to participate in initial training programs. Failure to satisfactorily complete this training may result in termination of the franchise agreement, with City Wide refunding the initial franchise fee minus incurred expenses, capped at $10,000. Franchisees must also obtain all necessary permits, licenses, and approvals to operate their business, ensuring compliance with City Wide's pre-opening standards and specifications.
The essence of the City Wide franchise agreement lies in maintaining a close working relationship with City Wide, adhering to the system's standards and policies, and being accountable for the obligations outlined in the agreement. The agreement is interpreted to ensure the franchised business operates in conformity with the City Wide system, through strict adherence to standards and policies that may be modified over time. Franchisees acknowledge this understanding of City Wide's basic business policy as outlined in the agreement.