Under what conditions related to training can City Wide terminate the franchise agreement immediately?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
14.1.6 If CITY WIDE, at its sole and absolute right, determines that Franchisee or any person Franchisee designates for mandatory training pursuant to Section 4.1 of this Agreement has not satisfactorily completed the training or been approved by CITY WIDE after a face-to-face interview and evaluation; or
(b) If CITY WIDE at its sole and absolute right determines that Franchisee (as defined and designated under Section 25 of this Agreement), Franchisee's salespersons, or Franchisee's designees are unable to satisfactorily complete the initial training program described above, CITY WIDE will have the right to terminate this Agreement. If CITY WIDE terminates this Agreement under this paragraph, CITY WIDE will return to Franchisee the Initial Franchise Fee paid by Franchisee to CITY WIDE minus the training and other expenses CITY WIDE incurred, but such expenses will be no more than Ten Thousand Dollars ($10,000). When CITY WIDE has returned this amount to Franchisee, Franchisee will fully and forever release CITY WIDE and its affiliates, subsidiaries, directors, officers and agents from any claims or causes of action Franchisee may have under this Agreement and Franchisee will have no further right, title or interest in the Marks, Software, or the System.
3.1 Initial Fees. Contemporaneously with Franchisee's execution of this Agreement, Franchisee must pay CITY WIDE an initial franchise fee ("Initial Franchise Fee") of Seventy Thousand Dollars ($70,000); plus, an initial training fee ("Initial Training Fee") of Seven Thousand Five Hundred Dollars ($7,500) plus an initial territory fee ("Initial Territory Fee") in the amount set forth on Attachment B plus a Technology Provisioning Fee ("Technology Provisioning Fee") of Twelve Thousand Five Hundred Dollars ($12,500) as set forth below. Initial Franchise Fee, Initial Training Fee, Initial Territory Fee and Technology Provisioning Fee are collectively referred to herein as the "Initial Fees."
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide has the right to terminate the franchise agreement immediately if it determines that the franchisee or any person designated for mandatory training has not satisfactorily completed the training or been approved by City Wide after a face-to-face interview and evaluation. This determination is at City Wide's sole and absolute discretion.
Additionally, City Wide can terminate the agreement if it determines that the franchisee, their salespersons, or designees are unable to satisfactorily complete the initial training program. In this case, City Wide will return the initial franchise fee minus training and other expenses, but these expenses will not exceed $10,000. Once this amount is returned, the franchisee releases City Wide from any claims and loses all rights to the Marks, Software, or the System.
These stipulations highlight the importance City Wide places on proper training and adherence to their standards. A prospective franchisee should carefully consider their ability and willingness to meet City Wide's training requirements, as failure to do so can result in immediate termination of the franchise agreement and financial loss. It is important to note that the initial training fee is $7,500, which is part of the initial fees that also include the initial franchise fee of $70,000, the initial territory fee, and the technology provisioning fee of $12,500.