What is the timeframe for satisfying a final judgment against a City Wide franchisee before it triggers immediate termination?

According to City Wide's 2025 Franchise Disclosure Document, a franchisee faces immediate termination of their franchise agreement if a final judgment against them remains unsatisfied or of record for ninety (90) days or longer. This condition applies unless a supersedeas bond is filed, which would suspend the judgment's effect.

This clause in the franchise agreement is significant because it means that City Wide franchisees must promptly address any legal judgments against them. Failure to do so within the specified timeframe can lead to the termination of their franchise, resulting in a loss of their business and the associated income. The inclusion of the 'supersedeas bond' exception provides a legal avenue for franchisees to temporarily avoid termination while they appeal a judgment.

Many franchise agreements contain similar clauses to protect the brand and the franchise system from franchisees experiencing severe financial or legal difficulties. The 90-day period provides a limited window for franchisees to resolve the judgment, seek legal remedies, or negotiate a settlement. Franchisees should be aware of this requirement and have a plan in place to manage potential legal challenges to avoid jeopardizing their franchise agreement with City Wide.