Under what condition can a written request by City Wide be considered binding on all franchisees?

According to City Wide's 2025 Franchise Disclosure Document, a written request by City Wide can become binding on all franchisees if at least 60% of the franchisees within the City Wide system provide their written consent to that request during the term of the agreement.

This means that City Wide can implement changes or amendments to the franchise agreement that would apply to all franchisees, even without the unanimous consent of every franchisee. However, this is contingent on securing written consent from a supermajority (60%) of the franchisees currently operating within the system. This mechanism allows City Wide to adapt the franchise system to changing market conditions or to implement improvements that benefit the entire network, while still ensuring that a significant portion of franchisees agree with the proposed changes.

For a prospective franchisee, this clause highlights the importance of understanding the dynamics within the City Wide franchise system. While the franchise agreement requires mutual written consent for changes, the 60% threshold introduces a scenario where changes can be imposed even if a franchisee dissents. It would be prudent for a potential franchisee to discuss with existing franchisees their experiences with this process and how City Wide has utilized this provision in the past. Understanding the types of changes that have been implemented through this mechanism and the overall level of franchisee satisfaction with these changes can provide valuable insights into the franchisor-franchisee relationship within the City Wide system.