After termination or expiration of the City Wide franchise agreement, what obligations does the franchisee have regarding attorney's fees incurred by City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | reasonable attorneys’ fees, incurred by CITY WIDE subsequent to termination or expiration in connection with obtaining injunctive or other relief under the Franchise Agreement; provide all signage to CITY WIDE; and take further action as may be required by the Operating Manual or reasonably requested by CITY WIDE; and, if due to your default, forfeit any royalty rebate. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–47)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, a franchisee has specific obligations regarding attorney's fees if the franchise agreement is terminated or expires. Specifically, the franchisee may be responsible for City Wide's reasonable attorney's fees.
This obligation arises if City Wide incurs these fees while seeking injunctive or other relief under the Franchise Agreement after the termination or expiration. In addition to attorney's fees, the franchisee must provide all signage to City Wide and take any further actions required by the Operating Manual or reasonably requested by City Wide.
Furthermore, if the termination is due to the franchisee's default, the franchisee will forfeit any royalty rebate. This means that if City Wide has to take legal action to enforce the agreement after termination or expiration due to the franchisee's actions, the franchisee will likely bear the cost of City Wide's legal expenses, in addition to other penalties and obligations.