Can the affiliate of Cd One Price Cleaners terminate the Sublease without cause?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| e. Termination by franchisor without cause | Not applicable | Our affiliate may not terminate the Sublease without cause. |
| f. Termination by franchisor with cause | 6 of Sublease | Our affiliate may terminate if you commit any one of several defaults. |
| g. “Cause” defined – curable defaults | 6 of Sublease | The Sublease allows you to cure any curable defaults under prime lease. |
| h. “Cause” defined – non-curable defaults | 6 of Sublease | Non-curable default under prime lease, abandonment, and material breach of Franchise Agreement or other agreement. Our affiliate may cure your defaults. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–62)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the franchisor's affiliate cannot terminate the Sublease without cause. This provision protects the franchisee from arbitrary termination of the Sublease by the franchisor's affiliate, providing a degree of security in the lease agreement.
However, the affiliate of Cd One Price Cleaners can terminate the Sublease if the franchisee commits certain defaults. These defaults can be either curable or non-curable. Curable defaults under the prime lease can be addressed by the franchisee, while non-curable defaults include situations like abandonment of the premises or a material breach of the Franchise Agreement or other related agreements. The franchisor's affiliate also has the option to cure the franchisee's defaults.
This arrangement is fairly typical in franchising, where the franchisor maintains some control over the leased location but must have a legitimate reason for terminating the Sublease. Prospective Cd One Price Cleaners franchisees should carefully review Section 6 of the Sublease agreement to fully understand what constitutes a default and what their rights and obligations are in such situations.