What is the term used to refer to the other party in the City Wide addendum, besides the Franchisor, for City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
RECITALS:
- A. CITY WIDE and Franchisee have entered into a CITY WIDE Franchise Agreement dated of even date herewith. ("Franchise Agreement").
- B. CITY WIDE and Franchisee understand and acknowledge that the recitals (stated in the Franchise Agreement and as captioned "WITNESSETH"), all definitions, all acknowledgments, and all warranties stated in the Franchise Agreement are incorporated herein by reference; and
- C. CITY WIDE and Franchisee desire to enter into a Non-Compete Agreement as provided herein.
NOW, THEREFORE, the parties, in consideration of the undertakings and commitments of each party to the other set forth in the Franchise Agreement, hereby agree as follows:
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- Unless otherwise specified, the meaning of the term "Franchisee" as used herein will include, collectively and individually, all officers, directors, and holders of a beneficial interest, at any time during the term of this Non-Compete Agreement, of the securities of Franchisee, and of any corporation directly or indirectly controlling Franchisee, if Franchisee is a corporation; and the general partners and any limited partner owning any percentage of Franchisee if a partnership.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the other party in the City Wide addendum, besides the franchisor, is referred to as the "Franchisee." This is explicitly stated in multiple sections of Item 22, which covers contracts related to the franchise agreement. The term 'Franchisee' is used consistently throughout the document to denote the individual or entity that is granted the franchise rights and is entering into the agreement with City Wide.
This designation is important because it clearly identifies the rights, responsibilities, and obligations of the franchisee within the contractual framework. For example, the FDD specifies that the Franchisee acknowledges they have had sufficient opportunity to consult with their own advisors and that City Wide's attorneys have not advised or represented them. The Franchisee is also responsible for maintaining all appropriate permits, licenses, and approvals required to operate the franchised business within their designated territory.
Furthermore, the Franchisee is recognized as an independent contractor, emphasizing that the agreement does not create a fiduciary relationship, agency, joint venture, partnership, or employer-employee relationship between the parties. This independent contractor status has significant implications for liability, indemnification, and control over business operations. The Franchisee has complete control and direction over their business operations and employees, subject only to the conditions and obligations outlined in the Franchise Agreement.
In summary, the consistent use of 'Franchisee' in the City Wide Franchise Disclosure Document provides clarity and legal precision, ensuring that all parties understand the role and responsibilities of the individual or entity acquiring the franchise. Prospective franchisees should pay close attention to all clauses referencing 'Franchisee' to fully understand their obligations and rights under the agreement.