Under what circumstances can City Wide declare that a franchisee has abandoned the business?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.1.10 If Franchisee fails to operate the Franchised Business during normal business hours for a period of seven (7) days or more without the prior written consent of CITY WIDE or any other circumstance which would lead a reasonable person to believe that Franchisee has permanently left the Franchised Business, and CITY WIDE will declare that Franchisee have abandoned the business for purposes of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide can declare that a franchisee has abandoned the business if the franchisee fails to operate the franchised business during normal business hours for a period of seven days or more without prior written consent from City Wide. This also applies to any other circumstance that would lead a reasonable person to believe that the franchisee has permanently left the franchised business.
This provision protects City Wide from potential damage to its brand and reputation that could occur if a franchise location is perceived as being abandoned. It allows City Wide to take action to ensure the continued operation of the business and maintain service to customers. The franchisee must obtain written consent from City Wide if they plan to close the business for seven or more days during normal business hours.
For a prospective franchisee, this means they must maintain consistent operation of their City Wide franchise during normal business hours. Failure to do so, without written consent, could result in City Wide declaring the business abandoned, which could lead to termination of the franchise agreement. This highlights the importance of communication and adherence to operational standards set by City Wide.
It is important for a prospective franchisee to understand what constitutes "normal business hours" as defined by City Wide and to ensure they have a plan in place to maintain operations, even in unforeseen circumstances. This could include having backup staff or arrangements for temporary coverage to avoid any potential disruption of service that could be interpreted as abandonment.