Under what condition does the City Wide Franchise Agreement addendum automatically terminate?

According to City Wide's 2025 Franchise Disclosure Document, the Franchise Agreement addendum can be terminated by City Wide if the underlying Franchise Agreement is terminated. This termination of the addendum occurs without City Wide incurring any liability to the franchisee. The termination is enacted through written notice, effective immediately upon delivery. The franchisee is responsible for all costs associated with the transition or termination, which will be billed according to the pricing outlined in the agreement.

This clause in the City Wide agreement is significant for prospective franchisees as it links the addendum's fate directly to the status of the main Franchise Agreement. If City Wide terminates the Franchise Agreement for any reason, the addendum is automatically terminated as well. This could have implications for services provided under the addendum, such as business development support, and the franchisee needs to understand the potential loss of these services if the main agreement is terminated.

It is important for a potential City Wide franchisee to fully understand the conditions under which City Wide can terminate the Franchise Agreement, as those conditions will also trigger the termination of the addendum. This includes understanding the cure periods for defaults and the specific events that can lead to termination, as detailed in Section 14 of the Franchise Agreement. Franchisees should also be aware of their obligations regarding compliance with standards, monetary obligations, and operational requirements, as failure to meet these could lead to termination and the subsequent loss of benefits under the addendum.