Under what conditions can City Wide terminate the Franchise Agreement if the franchisee or their personnel do not satisfactorily complete the initial training program?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
will also assist Franchisee in establishing and standardizing procedures and techniques essential to the operation of a Franchised Business and will assist in training Franchisee's personnel. If Franchisee requests additional assistance from CITY WIDE to facilitate the opening of the Franchised Business, and if CITY WIDE deems it necessary and appropriate, Franchisee will reimburse CITY WIDE for CITY WIDE's expense of providing such additional assistance.
- (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.
- (c) At all times Franchisee must employ trained individuals. If Franchisee designates new or additional managers, outside salespersons or quality-control persons after the initial
Manual.
training program, CITY WIDE will require and provide training to such persons to the extent that CITY WIDE can accommodate such managers in its regularly scheduled training course. CITY WIDE will provide such training at no cost;
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide has specific conditions under which it can terminate the Franchise Agreement if the franchisee or their personnel do not satisfactorily complete the initial training program. City Wide requires initial training for all new franchisees and may also require refresher training programs or seminars from time to time.
If City Wide determines that the franchisee, the franchisee's salespersons, or the franchisee's designees are unable to satisfactorily complete the initial training program, City Wide has the right to terminate the agreement. In the event of termination under these circumstances, City Wide will return the initial franchise fee to the franchisee, minus training and other expenses incurred, but these expenses will not exceed $10,000.
Additionally, City Wide may terminate the agreement if 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. City Wide also retains the right to suspend the franchisee's rights, including the right to operate the franchised business, until the mandatory training programs have been satisfactorily completed, regardless of whether City Wide has exercised its right to terminate the agreement.