Under what condition can City Wide withdraw approval of a Manager?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
CITY WIDE's approval of the Manager may be withdrawn if Franchisee is in default of the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 43)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide can withdraw approval of a manager if the franchisee is in default of the Franchise Agreement.
This means that if a City Wide franchisee fails to meet their obligations as outlined in the Franchise Agreement, City Wide has the right to revoke their approval of the appointed manager. This could include failure to pay royalties, not adhering to operational standards, or any other breach of contract.
For a prospective franchisee, this highlights the importance of adhering to the Franchise Agreement. If a franchisee violates the agreement, they risk losing not only their franchise but also the approved manager, which could disrupt the business's daily operations. It also emphasizes the need to select a manager who is capable and committed to upholding the standards of the City Wide franchise.