factual

What is the timeframe a City Wide franchisee has to initiate required maintenance after receiving notice from City Wide?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

ranchisee will maintain the condition and appearance of the Office of the Franchised Business consistent with CITY WIDE standards, as set forth in the Operating Manual and otherwise in writing. Franchisee will maintain such premises as CITY WIDE may from time to time require to maintain or improve the appearance and efficient operation of the Franchised Business, including, but not limited to, replacement of worn out or obsolete fixtures and signs, and repair of the Location. If any time in CITY WIDE's judgment the general state of repair or the appearance of the premises of the Franchised Business or its equipment, fixtures, or signs does not meet CITY WIDE's standards, CITY WIDE will so notify Franchisee and specify the action Franchisee must take to correct such deficiency. If Franchisee fails or refuses to initiate within thirty (30) calendar days after receipt of such notice, and continues to fail to implement a bona fide program to complete any required maintenance, CITY WIDE will have the right, in addition to all other remedies, to enter upon the premises of the Franchised Business and effect such repairs, painting, maintenance or replacements of equipment, fixtures or signs on Franchisee's behalf and Franchisee will repay CITY WIDE the entire costs on demand. If Franchisee fails to make any such payments or remedy operational deficiencies, such failure will constitute a material breach of this Agreement and CITY WIDE may terminate this Agreement. Except for

those repairs that would constitute a public health or safety hazard, or are required by any governmental agency, any such remodeling requirement will be imposed only in a nondiscriminatory manner upon (i) all comparably situated CIT

Source: Item 22 — CONTRACTS (FDD page 65)

What This Means (2025 FDD)

According to City Wide's 2025 Franchise Disclosure Document, a franchisee has 30 calendar days to initiate a program to complete required maintenance after receiving notice from City Wide. If the franchisee fails to initiate action within this timeframe, City Wide has the right to enter the premises and complete the repairs themselves, with the franchisee responsible for repaying all costs on demand.

This requirement ensures that all City Wide franchise locations maintain a consistent standard of appearance and operation. It protects the brand's reputation and ensures customer satisfaction across all locations.

Failure to comply with the maintenance requirements and payment obligations constitutes a material breach of the franchise agreement, potentially leading to termination of the agreement by City Wide. However, remodeling requirements that constitute a capital expenditure exceeding $25,000 will only be required if sufficient time remains in the Initial or Successor Terms to fully amortize or depreciate such expenditure under the Internal Revenue Code.

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.