When does the term of the City Wide Business Development Center Agreement begin for a new franchisee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Business Development Center Agreement ("Agreement") dated is entered into by and between City Wide Franchise Company, Inc. ("City Wide") and ("Franchisee") |
|---|
| (City Wide and Franchisee, collectively "Parties" or individually "Party"). |
| RECITALS |
| A. |
| City |
| Wide |
| and |
| Franchisee |
| are |
| parties |
| to |
| that |
| certain |
| Franchise |
| Agreement |
| dated |
| ("Franchise |
| Agreement"),[as amended] |
| pursuant |
| to |
| which |
| Franchisee |
| is |
| granted |
| the |
| right |
| to |
| operate |
| a |
| City |
| Wide franchise in the Designated Territory, as defined in the Franchise Agreement ("Franchised Business"). |
| B. |
| Franchisee desires to enlist the Services (defined below) of City Wide's Business Development |
| Center for the purpose of |
| assisting in |
| the |
| prospecting and developing of local City |
| Wide clientele. Services will be |
| provided starting as of the date the Franchised Business opens for business ("Open Date" or as otherwise agreed |
| to by the Parties) hereinafter the "Effective Date". |
| 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. |
| In consideration of the foregoing premises and the mutual covenants and agreements contained herein, the Parties |
| hereby agree as follows: |
| AGREEMENT |
| 1. |
| Services. |
| Subject to the terms of this Agreement and based on the information provided to City |
| Wide by Franchisee, City Wide agrees to provide various business development services to Franchisee, pursuant to |
| the selected package and/or selected services on the attached Business Development Services Packages ("Exhibit |
| A") attached hereto and made a part hereof (collectively, "Services"). |
| 2. |
| Term. |
| a. |
| NEW. Any new Franchisee signing a new Franchise Agreement for a new Franchised Business |
| is a new Franchisee to City Wide, the term of this Agreement will begin |
| on |
| the |
| "Effective |
| Date" |
| and |
| will |
| continue |
| for |
| a |
| period |
| of |
| twelve |
| (12) |
| months, |
| unless |
| terminated sooner in accordance |
| with Section 3 of this Agreement ("New Franchisee Initial Term"). |
| b. |
| EXISTING. If Franchisee |
| is an existing Franchise of |
| City |
| Wide |
| and |
| wishes |
| to |
| engage |
| City |
| Wide |
| for |
| the |
| BDC Services, the term of this Agreement will begin on date services to begin, the |
| ("Effective Date") and will continue for a period of six (6) months, unless terminated sooner |
| in accordance with Section 3 of this Agreement ("Existing Franchisee |
| Initial |
| Term"). |
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Business Development Center Agreement's term for a new franchisee begins on the "Effective Date." The "Effective Date" is the date the Franchised Business opens for business or as otherwise agreed to by both parties. The agreement lasts for twelve months, unless terminated earlier according to Section 3 of the agreement.
This means that a new City Wide franchisee's commitment to using City Wide's Business Development Center services starts when their franchise officially opens. This ensures that the franchisee has access to support during the critical initial phase of their business operations. The franchisee should clarify with City Wide what constitutes the "Open Date" to avoid any confusion.
It's important to note that the agreement can be terminated sooner based on the conditions outlined in Section 3. A prospective franchisee should carefully review Section 3 to understand the circumstances under which either party can terminate the agreement early. This could include performance-based reasons or other breaches of contract.
For existing franchisees who wish to engage City Wide for BDC Services, the term of the agreement begins on the date services begin, also referred to as the "Effective Date," and continues for six months, unless terminated sooner in accordance with Section 3 of the agreement.