factual

Under what conditions can a City Wide franchisee assign their rights to the agreement?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

Assignment.

City Wide may sell, transfer, or assign this Agreement at any time and thereby be released from any further obligations to Franchisee.

Franchisee may not sell, transfer, or assign Franchisee's rights to this Agreement without the prior written consent of City Wide, which may be granted or denied.

Source: Item 22 — CONTRACTS (FDD page 65)

What This Means (2025 FDD)

According to City Wide's 2025 Franchise Disclosure Document, a franchisee's ability to assign their rights under the franchise agreement is restricted. Specifically, the franchisee cannot sell, transfer, or assign their rights to the agreement without obtaining prior written consent from City Wide. This consent is not guaranteed, as City Wide retains the right to grant or deny such requests at their discretion.

This requirement for prior written consent gives City Wide significant control over who becomes a franchisee within their system. It allows them to vet potential new franchisees to ensure they meet the brand's standards and are a good fit for the City Wide system. This is a common practice in franchising, as franchisors want to maintain consistency and protect their brand reputation.

For a prospective City Wide franchisee, this means that if they ever wish to sell their franchise, they will need to seek approval from City Wide. City Wide's decision will likely depend on factors such as the buyer's financial stability, business experience, and commitment to adhering to the City Wide system. It is important for franchisees to understand this restriction and factor it into their long-term business plans.

While the FDD excerpt specifies that City Wide may assign the agreement at any time, it does not elaborate on the specific criteria or process City Wide uses to evaluate a franchisee's request to assign their rights. A prospective franchisee should inquire about the specific factors City Wide considers when evaluating assignment requests and any associated fees or requirements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.