Is there a Non-Compete Agreement attached to the City Wide Franchise Agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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IN WITNESS WHEREOF, the parties hereunder have duly executed, sealed, and delivered this Agreement on the day and year set forth above.
CITY WIDE FRANCHISE COMPANY, INC. PROSPECT:
ATTACHMENT F TO THE FRANCHISE AGREEMENT NON-COMPETE AGREEMENT
NON-COMPETE AGREEMENT
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, a Non-Compete Agreement is indeed attached to the Franchise Agreement. Specifically, Attachment F to the Franchise Agreement is titled "NON-COMPETE AGREEMENT." This agreement outlines the restrictions placed on the franchisee both during the term of the agreement and for a period of time after its termination or expiration.
The Non-Compete Agreement states that during the term of the agreement, the franchisee is prohibited from diverting business or customers to competitors, or engaging in any action that could harm the goodwill associated with City Wide's marks and system. Furthermore, the franchisee cannot own, maintain, engage in, consult with, or have any material interest in any competitive business specializing in similar services or products. These restrictions apply unless otherwise approved in writing by City Wide.
Post-termination, the franchisee is subject to similar restrictions for a period of two years, regardless of the cause of termination. This means that for two years after leaving the City Wide franchise system, a former franchisee cannot be involved in a similar business that competes with City Wide. The agreement also specifies that City Wide is entitled to immediate equitable remedies, including restraining orders, to protect its confidential information, as monetary damages alone may not be sufficient compensation for a breach of the agreement.
The Non-Compete Agreement also addresses the scope of these restrictions, noting they apply within a radius of 150 miles of the franchisee's business location, within the metropolitan statistical area where the business is located, or within a 150-mile radius of any other business using the City Wide system. City Wide also retains the right to reduce the scope of any covenant within the Non-Compete Agreement. Franchisees should carefully review Attachment F to fully understand the terms and limitations of the Non-Compete Agreement.