Under what grounds can a City Wide franchisee terminate the franchise agreement in Washington?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Termination.
At any time after the Initial Term, either Party may 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, and acceptance by the Parties.
Franchisee hereby acknowledges and accepts that any bonuses and/or commissions earned during the Term of the Agreement are still owed and payable pursuant to Exhibit B.
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, a franchisee can terminate the franchise agreement at any time after the initial term by providing 90 days written notice to City Wide. The termination is effective on the 90th day from the date of delivery of the written notice, and acceptance by the parties. This provides the franchisee with a defined exit strategy, allowing them to discontinue the franchise under their own terms with sufficient advance notice.
This termination right is mutual, meaning City Wide also has the right to terminate the agreement under the same conditions after the initial term. However, City Wide retains the right to terminate the agreement immediately if the Franchise Agreement is terminated by City Wide, without incurring any liability to the franchisee.
It is important to note that any bonuses or commissions earned by the franchisee during the term of the agreement are still owed and payable, even after termination. This ensures that the franchisee receives compensation for their efforts up to the point of termination, regardless of which party initiates the termination.