Under what conditions will City Wide permit a franchisee to relocate their City Wide Franchised Business to a Substitute Designated Territory?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
CITY WIDE will permit you to relocate your Franchised Business to an alternate territory within the same general vicinity ("Substitute Designated Territory"), which, at CITY WIDE's sole and absolute right, is a suitable location for the operation of the Franchised Business, if at the sole and absolute judgment of CITY WIDE, changes in the character of the Designated Territory are sufficiently detrimental to warrant relocation of the Franchised Business to the Substitute Designated Territory. CITY WIDE reserves the right to charge you a reasonable relocation fee as a condition of approval of any Substitute Designated Territory for the Franchised Business. Any such relocation will be at Franchisee's sole expense and CITY WIDE will have the right to charge Franchisee for any costs incurred by CITY WIDE, and a reasonable fee for its services, in connection with any such relocation of the Franchised Business.
Source: Item 12 — TERRITORY (FDD pages 36–39)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee may be permitted to relocate their franchised business to a Substitute Designated Territory under specific conditions. City Wide must determine, at its sole and absolute judgment, that changes in the character of the Designated Territory are sufficiently detrimental to warrant relocation. The Substitute Designated Territory must also be deemed a suitable location for the operation of the franchised business, again at City Wide's sole and absolute discretion.
If City Wide approves the relocation, it reserves the right to charge a reasonable relocation fee. The franchisee is responsible for all expenses associated with the relocation. City Wide also has the right to charge the franchisee for any costs incurred by City Wide, as well as a reasonable fee for its services related to the relocation.
This means that a City Wide franchisee cannot unilaterally decide to move their business. The decision rests entirely with City Wide. Even if the franchisee believes their current territory is no longer viable, City Wide has the final say. Furthermore, even with approval, the franchisee bears the full financial burden of the move, including potential fees charged by City Wide itself. This is a fairly typical arrangement in franchising, as franchisors want to maintain control over location decisions to protect brand consistency and market coverage.
Prospective franchisees should carefully consider the potential for territory changes and the costs associated with relocation before investing in a City Wide franchise. It would be prudent to discuss with existing franchisees their experiences with territory performance and relocation requests to gain a better understanding of the practical implications of this clause in the Franchise Agreement.