After termination or expiration of the City Wide franchise agreement, what obligations does the franchisee have regarding signage?
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 City Wide's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee is obligated to provide all signage to City Wide. This requirement is part of the broader obligations a franchisee has after the agreement ends, as outlined in Item 17 of the FDD.
This obligation means that a franchisee must relinquish all signs bearing the City Wide trademarks or branding. This is a standard practice in franchising to ensure that the brand's image is protected and that former franchisees do not continue to operate as if they are still part of the City Wide system. The franchisor needs to maintain control over its brand and prevent any potential misuse or misrepresentation by former franchisees.
In addition to providing the signage, the franchisee must also take further action as required by the City Wide Operating Manual or as reasonably requested by City Wide. Furthermore, if the termination is due to the franchisee's default, they may forfeit any royalty rebate. This highlights the importance of adhering to the terms of the franchise agreement to avoid penalties and ensure a smooth transition upon termination or expiration.