Under what condition can City Wide terminate the accounting services agreement without liability?

According to City Wide's 2025 Franchise Disclosure Document, City Wide can terminate the accounting services agreement without incurring liability to the franchisee if the Franchise Agreement itself is terminated by City Wide. This provision is outlined within the terms of the accounting services agreement that City Wide offers to its franchisees.

This condition means that the accounting services agreement is directly tied to the status of the franchise agreement. If City Wide terminates the franchise agreement for any reason, they can also terminate the accounting services agreement without owing any damages or compensation to the franchisee. This clause protects City Wide from being obligated to continue providing accounting services to a former franchisee.

For a prospective City Wide franchisee, this highlights the importance of maintaining a good standing under the franchise agreement. Any actions that could lead to the termination of the franchise agreement would also result in the loss of accounting services provided by City Wide. It is crucial to understand the conditions under which City Wide can terminate the franchise agreement to avoid this scenario. This also means that the franchisee may need to find alternative accounting services if the franchise agreement is terminated.