Under what conditions can City Wide enter and operate the franchised business?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
right to damages, injunctive relief, and declaratory orders for specific performance.
- 14.7 Applicable Law. To the extent that the provisions of this Agreement provide for periods of notice less than those required by applicable law, or provide for termination, cancellation, non-renewal or the like other than in accordance with applicable law, to the extent such provisions are not in accordance with applicable law, they will not be effective, and CITY WIDE will comply with applicable law in connection with each of these matters.
- 14.8 Right to Enter and Operate. In addition to CITY WIDE's right to terminate this Agreement, and not in lieu of such right or any other rights against Franchisee, if Franchisee has not cured a default under this Agreement within the time allotted by CITY WIDE after receipt of the Notice to Cure from CITY WIDE, CITY WIDE may, at its option, enter the premises of the Franchised Business and exercise complete authority with respect to its operation until such time as CITY WIDE determines that Franchisee's default has been cured and that there is compliance with the requirements of this Agreement. Franchisee specifically agrees that a Representative (as defined in Section 16) of CITY WIDE may take over, control, and operate the business, and that Franchisee will pay CITY WIDE a service fee of not less than Three Hundred Dollars ($300) per day plus all travel expenses, room and
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide has the right to enter and operate a franchised business under specific circumstances. If a franchisee fails to cure a default within the allotted time after receiving a notice to cure, City Wide has the option to enter the premises and exercise complete authority over the business's operation. This continues until City Wide determines the default has been resolved and the franchisee complies with the agreement.
In such cases, a City Wide representative can take over, control, and operate the business. The franchisee is then obligated to pay City Wide a service fee of at least $300 per day, in addition to covering all travel expenses, room and board, and other reasonable expenses incurred by the representative. This fee is charged for as long as the representative is required to enforce compliance with the franchise agreement.
Furthermore, if City Wide temporarily operates the business for the franchisee, the franchisee agrees to indemnify and hold City Wide and its representatives harmless from any claims arising from acts or omissions related to the operation of the business. This includes actions taken regarding the interests of the franchisee or third parties. This provision ensures that City Wide can maintain the standards and operations of the franchise even when the franchisee is unable to do so, while also protecting City Wide from potential liabilities during the period of their management.