Can City Wide unilaterally change the Operating Manual?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| transferee acceptable to CITY WIDE, subject to compliance with the transfer restrictions above; provided, however, that the Survivor will, throughout such period, fulfill all duties of Franchisee under this Agreement. The 6 months will be extended by up to 60 days to account for CITY WIDE's right of first refusal under described above. Failure to so dispose of the interest within such time will constitute a material breach of the Franchise Agreement. | ||
| q. Non-competition covenants during the term of the franchise | Section 12; Attachment F | You cannot be involved in a competing business. |
| r. Non-competition covenants after the franchise is terminated or expires | Section 12; Attachment F | You cannot be involved in a competing business in your Designated Territory for 2 years after the Franchise Agreement terminates or expires, within the Standard Metropolitan Statistical Area (SMSA) where the Franchised Business Location is located, or within 150 miles of any other CITY WIDE location, whether franchised or operated by CITY WIDE or one of its franchisees or affiliates. |
| S. Modification of the agreement | Section 22 | The Franchise Agreement cannot be modified unless both parties have signed the modifications in writing, but Operating Manual may be changed by CITY WIDE. However, if, at any time during the Term, 60% or more of the franchisees then operating within the CITY WIDE System provide their written consent to a written request by CITY WIDE to modify a provision in the Franchise Agreement, you are deemed to have provided your assent to such a modification to the Franchise Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–47)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide has the ability to unilaterally change the Operating Manual. The FDD outlines that while the Franchise Agreement requires written consent from both parties to be modified, the Operating Manual can be changed solely by City Wide. This is a common practice in franchising, allowing franchisors to adapt operational standards and procedures as needed.
However, the Franchise Agreement itself can be modified if a significant majority of franchisees (60% or more) provide written consent to a proposed change by City Wide. In such a case, all franchisees, including those who did not individually consent, are deemed to have agreed to the modification. This provision introduces a mechanism for collective franchisee influence on the terms of the Franchise Agreement.
This ability for City Wide to alter the Operating Manual unilaterally means that franchisees must stay informed of any changes and adapt their business practices accordingly. While franchisees do have a mechanism to influence changes to the Franchise Agreement, they do not have the same ability regarding the Operating Manual. Prospective franchisees should understand that operational guidelines and requirements can evolve during the term of their agreement at the discretion of City Wide.