Does City Wide warrant or represent that all City Wide System franchise agreements will contain terms substantially similar to those in the current agreement?
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 will contain substantially similar terms to the current agreement. City Wide retains the right to modify provisions in other franchise agreements based on reasonable business judgment, which may include adapting to local business conditions. These modifications can be non-uniform unless otherwise required by the agreement or by law.
This means that a prospective City Wide franchisee should not assume that the terms of their franchise agreement will be identical to those of other franchisees. City Wide has the flexibility to adjust terms as it sees fit, potentially creating variations in agreements across different locations or franchisees.
This flexibility allows City Wide to respond to specific market conditions or individual franchisee situations. However, it also introduces an element of uncertainty for franchisees, as their agreement may differ from others in the system. It is important for a prospective franchisee to carefully review the franchise agreement and understand that its terms are not guaranteed to be the same as those offered to other franchisees. Franchisees should seek clarification from City Wide regarding any specific concerns about the potential for variations in franchise agreements.