Does City Wide warrant or represent that all City Wide System franchise agreements contain substantially similar terms?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 24.5 No warranty or representation is made by CITY WIDE that all CITY WIDE System franchise agreements heretofore or hereafter issued by CITY WIDE do or will contain terms substantially like to those contained in this Agreement. Further, Franchisee recognizes and agrees that CITY WIDE may, in its Reasonable Business Judgment, due to local business conditions or otherwise, waive or modify comparable provisions of other franchise agreements heretofore or hereafter granted to other CITY WIDE System franchise owners in a non-uniform manner, unless otherwise required by this Agreement or by law.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide does not warrant or represent that all franchise agreements within the City Wide System contain substantially similar terms. City Wide retains the right to modify franchise agreements based on its reasonable business judgment, which may include adapting to local business conditions.
This means that prospective City Wide franchisees should not assume that their franchise agreement will be identical to those of other franchisees. The terms and conditions can vary, and City Wide has the discretion to make changes to comparable provisions in other franchise agreements. This flexibility allows City Wide to address specific market needs or circumstances that may differ across various locations.
This lack of uniformity introduces an element of risk and uncertainty for franchisees. While City Wide states it will exercise reasonable business judgment, the potential for differing terms could impact a franchisee's rights, obligations, or competitive position within the system. Therefore, it is crucial for potential franchisees to carefully review the franchise agreement and seek legal counsel to fully understand the specific terms and conditions applicable to their franchise.
Prospective franchisees should pay close attention to any clauses that grant City Wide discretion or the ability to modify terms. Understanding the scope of these provisions is essential for assessing the potential impact on their investment and business operations. It would be prudent for a prospective franchisee to inquire about the typical variations seen in City Wide franchise agreements and the reasons behind such modifications.