Under what conditions can either party terminate the agreement with City Wide after the initial term?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise agreed to by the Parties, a t any time after the Initial Term, either Partymay terminate this Agreement upon providing ninety (90) days written notice to the other Party, with the termination effective on the ninetieth day from date of delivery of the written notice.
City Wide will have the right, without incurring any liability to Franchisee, by notice in writing effective when given, to terminate this Agreement in the event the Franchise Agreement is terminated by City Wide.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, after the initial term of the agreement, either party, whether it be City Wide or the franchisee, can terminate the agreement. To do so, the terminating party must provide written notice to the other party. The termination is effective either six or ninety days after the date of delivery of the written notice, depending on the specific agreement in question.
Specifically, the agreement regarding accounting and financial services allows either party to terminate after the initial term by providing ninety days' written notice to the other party. The termination becomes effective on the ninetieth day from the date the written notice was delivered.
In contrast, the general franchise agreement requires a longer notice period. Either party can terminate after the initial term by providing six months' prior written notice to the other party. The termination is effective as stated in the notice, but no earlier than six months after the notice is given. This longer notice period provides more time for both City Wide and the franchisee to prepare for the transition, which is a common practice in franchise agreements to ensure a smooth handover and minimize disruption to the business.