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Are there any geographic limits on where City Wide franchisees can advertise their services?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

g staff, NBD operations and accounting and customer appreciation. None of these funds were spent to solicit new franchise sales.

CITY WIDE has the right to require cooperatives to be formed, dissolved or merged. For example, CITY WIDE may designate a local or regional advertising coverage area in which your Franchised Business and at least one other Franchised Business is located for purposes of developing a cooperative local or regional advertising or promotional program. You will contribute your share to such cooperative advertising and promotional program agreed upon by 50% or more of the Franchised Businesses within the designated dominant market area ("DMA") as defined by Nielsen Media Research, a company of the Dun & Bradstreet Corporation, or comparable industry designation. The cost of the program will be allocated among each CITY WIDE Franchised Business in such area and each franchisee's share will be in proportion to its Gross Sales during the preceding twelve-month period, or portion of that period. Such payments will be in addition to and exclusive of any other sums you are required to spend on advertising.

Currently, however, CITY WIDE has no franchisee cooperatives, but does have one franchisorowned outlet. CITY WIDE owned outlets do not have controlling voting power on fees imposed by any franchisee cooperatives formed in the future.

Through funding from the Marketing Fund, CITY WIDE establishes on your behalf directory listings on relevant outlets (e.g., Yelp, Bing Yellow Pages, Better Business Bureau) within your Designated Territory. You are required to notify CITY WIDE if your physical address changes so these listings can be updated; you are responsible for the cost to make changes to already established listings. You can claim the listings established on your behalf. You may also conduct local advertising in form, content, and in media approved by CITY WIDE and to make every reasonable effort to promote and increase the demand for the products and services of your own Franchised Business and of other franchisees under the System and agree to conduct your local advertising in conformity with the requirements set forth periodically in the Operating Manual.

CITY WIDE will establish a Google My Business ("GMB") account for each new franchise location. For the protection of its franchise locations, CITY WIDE shall be the designated Owner of all CITY WIDE GMB accounts, both established and new. Each franchisee should have Manager access to their respective GMB account; other Managers can be added at the franchisee's request. Manager access allows the same capabilities within the GMB account as Owner (including editing the listing and managing reviews), with the exception of the ability to delete the listing and add/remove users.

You will not advertise or use in advertising or any other form of promotion the Marks or commercial symbols of CITY WIDE without appropriate registration marks or the designations TM or SM where applicable. You will conform all advertising or promotional uses of the Marks to the guidelines set forth in the Operating Manual and other documentation provided by CITY WIDE.

Under the Franchise Agreement, you must obtain CITY WIDE's prior written consent before you establish a presence on or market your Franchised Business using the Internet.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 44)

What This Means (2025 FDD)

According to City Wide's 2025 Franchise Disclosure Document, franchisees may face some geographic limitations and require approval for advertising. City Wide may designate local or regional advertising coverage areas where franchisees must participate in cooperative advertising programs if 50% or more of the franchisees in that designated market area (DMA) agree. The cost of these programs is allocated based on each franchisee's gross sales over the preceding 12-month period. These payments are in addition to any other advertising expenses the franchisee incurs.

City Wide also establishes directory listings on relevant online outlets within the franchisee's designated territory. Franchisees are responsible for notifying City Wide of any address changes to keep these listings current and for covering the costs of amending existing listings. While franchisees can conduct local advertising, it must be in a form, content, and media approved by City Wide and in accordance with the requirements in the Operating Manual.

Furthermore, franchisees must obtain City Wide's prior written consent before establishing an online presence or marketing their franchise on the Internet. City Wide retains the sole right to market on the Internet, including social media, and can require franchisees to provide content for City Wide's internet marketing efforts. Franchisees must also adhere to City Wide's internet usage rules and participate in any Intranet system established by City Wide. This indicates that while franchisees have some freedom in local advertising, City Wide maintains significant control over online marketing and can implement cooperative advertising programs that affect advertising spend.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.