Under what condition can a City Wide franchisee designate a full-time manager?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ed Territory. If more than one (1) individual has executed this Agreement as Franchisee, Franchisee must designate one (1) individual who will devote his or her full time and will be directly involved in the operation of the Franchised Business. Franchisee will always faithfully, honestly, and diligently perform Franchisee's obligations under this Agreement and will not engage in any business or other activities that will conflict with Franchisee's obligations under this Agreement
7.11.1 If the Franchised Business is in the top twenty-five percent (25%) of the System in terms of Annual Revenue Per Capita Growth or a similar metric established from time to time by CITY WIDE, Franchisee may designate a trained and competent employee to be a full-time manager ("Manager") to run the day-to-day operations of the Franchised Business with Franchisee providing its continued support to the Manager, subject to CITY WIDE'S sole and absolute discretion and the conditions set forth below. Where the Franchised Business is the first CITY WIDE business in the Designated Territory or surrounding area, the option of appointing a Manager is not available. The Franchisee must directly operate and manage the Franchised Business. Where a Franchisee is wishing to designate a Manager, the following minimum conditions must be met:
(a) Manager must meet the then-criteria used by CITY WIDE for approving new franchisees.
(b) Manager must have the necessary experience in accordance with the Operating Manual to operate the Franchised Business.
(c) Manager must own at least a twenty percent (20%) interest in Franchised Business (if Franchisee is an entity, Manager must own twenty percent (20%) of the entity that owns the Franchised Business); provided however, that CITY WIDE may agree to an alternative arrangement (other than direct ownership by the Manager) in exceptional circumstances.
(d) Manager must live in the Designated Territory and must devote fulltime, year round and best efforts to supervising the operation of the Franchised Business on a daily basis. CITY WIDE reserves the right to request proof of residency of either Franchisee or your Manager, as applicable, and proof of your Manager's ownership interest, if you nominate a Manager.
(e) The Manager must sign the Guaranty and Assumption of Obligations, the Confidentiality Agreement, and the Non-Compete Agreement, attached hereto as Attachments A, E and F respectively.
(f) The Franchised Business must remain in the top twenty-five percent (25%) of the System in terms of Annual Revenue Per Capita Growth or a similar metric established from time to time by CITY WIDE.
(g) Within five (5) business days of the Manager's separation from day-today operations of the Franchised Business, the Franchisee will immediately assume the day-to-day responsibilities of operating the Franchised Business unless or until a replacement Manager is appointed, in accordance to and subject to terms of this Agreement and the Operating Manual.
7.11.2 CITY WIDE's approval of the Manager may be withdrawn if Franchisee is in default of this Agreement.
7.11.3 From time to time, CITY WIDE may modify the criteria outlined herein and in the Operating Manual to establish new criteria as it relates to the appointment of the Manager.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee can designate a full-time manager to run the day-to-day operations of the franchised business if the franchised business is in the top twenty-five percent of the system in terms of Annual Revenue Per Capita Growth or a similar metric established by City Wide. This is subject to City Wide's sole and absolute discretion. However, this option is not available if the franchised business is the first City Wide business in the Designated Territory or surrounding area.
To designate a manager, the manager must meet the criteria used by City Wide for approving new franchisees and have the necessary experience according to the Operating Manual. The manager must also own at least a twenty percent interest in the franchised business, although City Wide may agree to an alternative arrangement in exceptional circumstances. Additionally, the manager must live in the Designated Territory and devote full-time, year-round effort to supervising the business daily.
The manager is also required to sign the Guaranty and Assumption of Obligations, the Confidentiality Agreement, and the Non-Compete Agreement. The franchised business must also remain in the top twenty-five percent of the System in terms of Annual Revenue Per Capita Growth or a similar metric. If the manager separates from the day-to-day operations, the franchisee must immediately assume those responsibilities until a replacement manager is appointed. City Wide may withdraw approval of the manager if the franchisee is in default of the Franchise Agreement and may modify the criteria for manager appointment from time to time.