Within what radius of another City Wide business location is a franchisee prohibited from competing after termination?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- a.
Within a radius of 150 miles of Franchisee's Franchised Business Location.
- b.
Within the metropolitan statistical area where Franchisee's Franchised Business is located; or
- c.
Within a radius of 150 miles of the Location of any other business using the System, whether franchised or owned 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 is restricted from competing within a specific radius of other City Wide locations after the termination of their franchise agreement. This non-compete obligation extends to two distinct geographic areas.
First, the franchisee cannot compete within a 150-mile radius of their own franchised business location. Second, the franchisee is prohibited from competing within a 150-mile radius of any other business using the City Wide system, whether that business is franchised or owned directly by City Wide.
These restrictions are designed to protect City Wide's market and brand integrity by preventing former franchisees from leveraging their knowledge of the City Wide system to compete unfairly. The agreement specifies that these covenants are independent, and City Wide retains the right to reduce the scope of these restrictions. This means that even if a portion of the non-compete agreement is deemed unenforceable, the franchisee is still bound by the maximum duty permitted by law. Prospective franchisees should carefully consider these post-termination restrictions and how they might impact their future business opportunities.