Under what circumstances can City Wide terminate the agreement without incurring liability to the franchisee?

According to City Wide's 2025 Franchise Disclosure Document, City Wide can terminate the agreement without liability to the franchisee if the Franchise Agreement is terminated by City Wide. This condition applies to the Technology System Agreement and the Business Development Agreement.

This means that if City Wide has grounds to terminate the underlying Franchise Agreement with a franchisee, they can also terminate related agreements like those for IT services or business development without owing the franchisee any damages or compensation. The termination is effective immediately upon written notice.

This provision protects City Wide from potential claims by franchisees who might argue that even if the main franchise agreement is rightfully terminated, related service agreements should continue or warrant some form of compensation. It aligns the service agreements with the status of the core franchise agreement. A prospective franchisee should carefully review the conditions under which City Wide can terminate the Franchise Agreement to understand the full scope of this clause.