What training must a proposed transferee complete to the satisfaction of City Wide before a transfer can occur?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.4.5 If CITY WIDE approves the proposed transferee, Franchisee, the Affiliated Company, or the Owner may transfer the interest to the proposed transferee pursuant to a form of transfer or assignment approved in advance by CITY WIDE at a price and under terms and conditions which are not more favorable than the terms offered to CITY WIDE, but only after the proposed transferee has completed (to the satisfaction of CITY WIDE) the initial training then currently required of System franchisees and has paid CITY WIDE all fees associated with such training, as assessed by CITY WIDE at its sole and absolute right;
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a proposed transferee must complete the initial training that is currently required of new City Wide franchisees to the satisfaction of City Wide. The transferee must also pay all fees associated with this training, as determined solely by City Wide. This requirement ensures that the new owner is properly trained and capable of operating the franchise according to City Wide's standards.
This condition is part of the broader requirements for transferring a City Wide franchise. The franchisee must first notify City Wide of the proposed transfer, including details about the transferee's background and financial qualifications. The proposed transferee must also apply for a franchise and meet all of City Wide's current standards for franchisees. City Wide retains the right to purchase the franchise interest themselves by matching the terms of the proposed transfer.
Before the transfer can be finalized, the franchisee must pay all outstanding amounts owed to City Wide and resolve any breaches of the franchise agreement. Additionally, the franchisee must provide City Wide with a general release of claims. City Wide may also require the transferee to guarantee the franchisee's obligations under the franchise agreement. These stipulations protect City Wide's interests and ensure the continued smooth operation of the franchise system under new ownership.
City Wide may also require an inspection of the franchise location and the franchisee's books and records. Based on this inspection, City Wide may require necessary repairs, maintenance, or upgrades to the location before approving the transfer. Additional fees discovered during the inspection may also need to be paid. These measures ensure that the franchise location meets City Wide's standards and that all financial obligations are met before the transfer is completed.