Under what conditions can City Wide modify or discontinue the National Business Development Program?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
CITY WIDE has established a program focused on attracting and servicing clients that have a regional or national presence ("National Business Development Program"). While CITY WIDE has the right to establish and maintain such a program, it has no obligation to do so; CITY WIDE reserves the right to modify or discontinue the National Business Development Business Program at any time upon written notice to you. (See Section 3.6 of the Franchise Agreement). The details of the National Business Development Program are included in the Operating Manual and other written communications from CITY WIDE.
Notably, there are two aspects of the National Business Development Program. CITY WIDE may establish various national accounts ("National Accounts") to be serviced by multiple franchisees in different Designated Territories, but not necessarily in all Designated Territories. CITY WIDE has established national accounts with national companies with locations all over the United States with whom CITY WIDE typically negotiates one contract for each personal account ("National Account Contract") for the provision of facility maintenance services for all of the national account's locations ("Top Down Account"). CITY WIDE also might be designated a preferred vendor by a regional or national account ("Preferred Vendor Account").
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–28)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide retains the right to modify or discontinue its National Business Development Program at any time. The only condition specified is that City Wide must provide written notice to the franchisee.
The National Business Development Program focuses on attracting and servicing clients with a regional or national presence. This program can be a significant source of revenue for franchisees, as it involves establishing national accounts serviced by multiple franchisees across different territories. These national accounts may be 'Top Down Accounts,' where City Wide negotiates contracts for facility maintenance services across all of the national account's locations, or 'Preferred Vendor Accounts,' where City Wide is designated as a preferred vendor by a regional or national account.
The ability of City Wide to modify or discontinue the program at any time presents a potential risk for franchisees who may rely on the National Business Development Program for a portion of their revenue. While written notice is required, the FDD does not specify how much advance notice City Wide must provide. A prospective franchisee should consider the potential impact of such changes on their business and inquire about the typical notice period provided by City Wide in such situations. Understanding the details of the program, as outlined in the Operating Manual and other written communications, is crucial for assessing its potential benefits and risks.