Under what conditions will a City Wide franchisee be required to assign and resell proprietary equipment to City Wide after termination?

According to City Wide's 2025 Franchise Disclosure Document, a franchisee may be required to assign and resell proprietary equipment to City Wide upon request after the termination of the franchise agreement. This requirement applies to any proprietary equipment and items bearing City Wide's trademarks or other intellectual property.

Specifically, City Wide can request that the franchisee assign and resell their interest in the proprietary equipment back to City Wide at its depreciated market value. Alternatively, the franchisee can sell the proprietary items to a City Wide-approved buyer or properly destroy and dispose of the items. The franchisee must provide City Wide with satisfactory evidence of compliance with this obligation within 30 days after the termination or expiration of the franchise agreement.

This provision ensures that City Wide maintains control over its proprietary equipment and branding even after a franchise agreement ends. It also prevents former franchisees from using City Wide's branded equipment in a way that could damage the brand's reputation or create confusion in the market. Franchisees should be aware of this obligation and factor in potential costs associated with reselling, selling to an approved buyer, or disposing of the equipment when considering the franchise opportunity.