Under what circumstances is City Wide not responsible for inaccurate financial reports?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will be solely responsible for providing City Wide with all requested and required documents, data, contracts, account information and access and other information and access reasonably requested by City Wide so that City Wide can provide the Services to Franchisee.
City Wide will not be responsible for the production of inaccurate information, records and billings or any other financial reports if the data submitted by Franchisee is inaccurate.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide is not responsible for the production of inaccurate information, records, billings, or any other financial reports if the data submitted by the franchisee is inaccurate. This means that the accuracy of the financial reports that City Wide provides to its franchisees is directly dependent on the accuracy of the information that the franchisee provides to City Wide.
For a prospective City Wide franchisee, this highlights the importance of maintaining accurate and organized records. Franchisees must ensure that all documents, data, contracts, account information, and access provided to City Wide are correct. Any errors or omissions in the data provided by the franchisee could lead to inaccurate financial reports, for which City Wide will not be held liable.
This condition underscores the franchisee's responsibility to diligently manage their business records and to verify the accuracy of all information submitted to City Wide. It is a standard practice in franchising for franchisees to be responsible for the accuracy of their own data, as they are the ones managing the day-to-day operations of their business. Franchisees should implement internal controls and verification processes to minimize the risk of submitting inaccurate data to City Wide.