factual

Under what circumstances will City Wide declare that a franchisee has abandoned the business?

City_Wide Franchise · 2025 FDD

Answer 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 will 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 clause protects City Wide from franchisees who might neglect their business without formally terminating the agreement. Abandonment can severely impact the brand's reputation and customer service in the affected area. By defining abandonment, City Wide retains the right to step in and take action to maintain the business's continuity and protect its brand.

For a prospective franchisee, this means that consistent operation and communication with City Wide are crucial. If unforeseen circumstances arise that prevent the franchisee from operating the business, obtaining written consent from City Wide is essential to avoid being declared in default. This requirement ensures that franchisees remain engaged and responsible in managing their City Wide franchise.

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.