Is a transfer by City Wide binding upon City Wide's successors and assigns?

According to City Wide's 2025 Franchise Disclosure Document, when City Wide transfers the Franchise Agreement, the transfer is binding upon and benefits City Wide's successors and assigns. This means that if City Wide sells the franchise system or merges with another company, the new entity assumes all of City Wide's rights and obligations under the existing franchise agreements.

For a prospective franchisee, this clause ensures that the terms of their franchise agreement will remain in effect even if the ownership of City Wide changes. The new owners must honor the existing agreements, providing a level of stability and predictability for the franchisee. This is a fairly standard practice in franchising, as it protects the franchisee's investment and business operations from being disrupted by changes in the franchisor's corporate structure.

Furthermore, the Guaranty agreements associated with the franchise also extend to City Wide's successors, transferees, and assigns. This ensures that the financial obligations and guarantees provided by the franchisee and any guarantors remain enforceable, regardless of any changes in the ownership or structure of City Wide. This provision reinforces the long-term commitment and financial security of the franchise agreement for both parties.